During the Christmas holiday season, the price of Christmas trees increases and the quantity demanded for trees also increases. Does it reflect change in quantity demanded or change in demand? Support your answer with the use of a diagram. Label your diagram with appropriate variables on X axis and Y axis.
During the Christmas holiday season, the price of Christmas trees increases and the quantity demanded for...
During the Christmas holiday season, the price of Christmas trees increases and the quantity demanded for trees also increases. Does it reflect change in quantity demanded or change in demand? Support your answer with the use of a diagram. Label your diagram with appropriate variables on X axis and Y axis.
Target sells a popular model of pre-lit artificial Christmas trees during the holiday season. The total procurement cost per unit is $70, and the selling price is $120. At this price, the anticipated demand during the selling season is normally distributed, with a mean of 900 units and standard deviation of 200 units. Any unsold units at the end of the season will be disposed of in a postseason sale for $55. It costs $25 to hold a unit in...
If the percent change in the quantity demanded for good X increases 10%, as the price of good Y increases 5%, how do X and Y relate, if at all. calculate the cross price elasticity of demand Microeconomics
Question 1 (a) Right before Christmas, the price of Christmas trees went up by 30%, while the quantity of Christmas trees sold increased by 80%. Do these figures imply an upward sloping demand curve for Christmas trees? Explain with a diagram. (10 marks) (b) The Kowloon Motor Bus (KMB) Company Limited has done a research on the price elasticity of demand for bus service. The following table shows that the price elasticity of demand varies in different timeslots of a...
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...
1) If the quantity demanded of one good increases from 200 to 300 when the price of another good increases from $5 to $7, what is the Cross-Price Elasticity of Demand? a: -.4 b: 1.21 c: -1.21 D: .33 2) If the quantity demanded decreases from 480 to 460 when the price increases from $2 to $2.10, the price elasticity of demand in absolute value is: A: .88, B: 4.3 C: 1.14 D: 1.49 Based on your answer above, demand...
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? What is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
Suppose that when the price of good X increases from $500 10 $720, the quantity demanded of good Y decreases from 67 to 15. Using the midpoint method, the cross-price clasticity of demand is about -6.98, and X and Y are complements 6.0.14, and X and Y are complements 6.6.98, and X and Y are substitute 0.0.14, and X and Yare subtitles
Q02 A consumer is choosing between good 'X' and a composite good Y.' The price of 1 unit of good X is $2. The below diagram shows the consequences of a change in the price of good X.' The initial pre-change optimal bindle is the new post-change optimal consumption bundle is Ez. Use the information provided in the diagram to answer the following questions. a. Did the price of 1 unit of good 'X' increase or decrease? b. Use the...