Q 3. Suppose that hamburger and pizza are substitutes. What is the effect on the price...
Q 3. Suppose that hamburger and pizza are substitutes. What is the effect on the price of a hamburger and the quantity of hamburgers sold if:
- The price of a pizza increases
- The cost of producing a pizza increases
Homework Answers
Hamburger and Pizza are substitute to each other. The cross elasticity between these two would be positive.
A. When the price of pizza will increase then the demand for Hamburger will increase. That is for every price the quantity demanded of hamburger will increase.
B. When cost of producing pizza increases then the supply of pizza will shift leftwards then the new equilibrium price of pizza will increase. Hence, the quantity demanded of hamburger will increase.
Please contact if any query will be obliged to you for your generous support. Your help me in a lot to me, please help. Thank you
Add Answer to:
Q 3. Suppose that hamburger and pizza are substitutes. What is
the effect on the price...
Suppose that capital and labor are prefect substitutes in a one-to-two ratio such that: Q =...
Suppose that capital and labor are prefect substitutes in a one-to-two ratio such that: Q = 2K + L. Currently, the wage rate is w=5 and the rental rate is r=8. a) What is the minimum cost and method of producing Q=20 units of output? b) Suppose that the price of capital increases to r=12. If we keep the total cost the same as in part (a), what level of output can now be produced and what method of production...
One week, the quantity of pizza consumed is 35 slices per day at a price of...
One week, the quantity of pizza consumed is 35 slices per day at a price of $2.00 per slice. The next week, the price of pizza rises to $2.50 per slice, but the quantity consumed falls to 5 slices per day. Calculate the price elasticity of demand. Is demand for pizza elastic or inelastic? A car company hires economists to calculate the price elasticity of demand for their most popular brand. They find that the PED is .01. If the...
Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and...
Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by: A. the substitution effect. B. the income effect. C. the price effect. D. a rightward shift in the demand curve for hamburgers.
A hamburger company produces hamburgers according to the production function Q = F(K,L) = 4K +...
A hamburger company produces hamburgers according to the production function Q = F(K,L) = 4K + 8L. 2 a. How many hamburgers are produced when K = 2 and L = 3? b. If the wage rate is $60 per hour and the rental rate on capital is $20 per hour, what is the cost-minimizing input mix for producing 32 units of hamburgers? c. How does your answer to part b change if the wage rate decreases to $20 per...
1. What effect could the following have on the demand for hamburgers? a. (0.2 pt) The...
1. What effect could the following have on the demand for hamburgers? a. (0.2 pt) The price of hot dogs decreases b. (0.2 pt) The price of hamburgers increases. c. (0.2 pt) The price of hamburger buns decreases. d. The income of hamburger consumers increases. 1. (0.2 pt) If hamburgers are a normal good. 2. (0.2 pt) If hamburgers are an inferior good 2. Consider the market for minivans in Naperville, Illinois. For each of the events listed below identify...
Price (dollars per pound) Price dollars per pound) Quantity tons of hamburger] Quantity tons of hamburger)...
Price (dollars per pound) Price dollars per pound) Quantity tons of hamburger] Quantity tons of hamburger) Figure A Figure B Price (dollars per pound) Price (dollars per pound) Quantity lions of homburger) Quantity tons of hamburger) Figure C Figure D 1)- The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed? Figure 2)- The above figures show the market...
Question 5 If a market is in equilibrium, then all demanders receive the goods they want,...
Question 5 If a market is in equilibrium, then all demanders receive the goods they want, and all suppliers sell the goods they want O demand curves and supply curves are the same at the equilibrium price, quantity demanded is equal to quantity supplied Question 6 If excess demand exists in a market, then the quantity demanded is higher than the quantity supplied and price falls the quantity demanded is higher than the quantity supplied and price rises the quantity...
Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily...
Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily costs: Cost Labor $200 Ingredients $500 $100 $60 Rent Supplies $20 Utilities Based on that information her average total cost per day is $ per hamburger. Suppose that she knows that the marginal cost of a hamburger at her current level of output is $2. That implies that if tomorrow she increases her output then her average total cost w increase Check stay the...
Suppose demand for hamburgers is: Q = 16 − P 2. a) How many hamburgers do...
Suppose demand for hamburgers is: Q = 16 − P 2. a) How many hamburgers do you sell if the price is P = 2? What is your total revenue? b)What is the elasticity of demand for hamburgers at P = 2? Is demand on the elastic or inelastic region of the demand curve? c) Suppose price increases by 10%. Use the elasticity of demand to show what you expect to happen to quantity (roughly). Use this to predict what...
Suppose Josh’s elasticity of demand for hamburgers is -1.25. If the price increased 25%, how would...
Suppose Josh’s elasticity of demand for hamburgers is -1.25. If the price increased 25%, how would Josh's hamburger purchases change? increase hamburger purchases by 31.25 percent decrease hamburger purchases by 31.25 percent. increase hamburger purchases by 20.1 percent decrease hamburger purchases by 20.1 percent increase hamburger purchases by 1.25% decrease hamburger purchases by 1.25% Question 3 Suppose the price of steak dropped from $10.00/lb to $9.00/lb. If steak is inelastic over this range, we would expect Total revenue of steak...
1. What effect could the following have on the demand for hamburgers? a. (0.2 pt) The price of hot dogs decreases b. (0.2 pt) The price of hamburgers increases. c. (0.2 pt) The price of hamburger buns decreases. d. The income of hamburger consumers increases. 1. (0.2 pt) If hamburgers are a normal good. 2. (0.2 pt) If hamburgers are an inferior good 2. Consider the market for minivans in Naperville, Illinois. For each of the events listed below identify...
Price (dollars per pound) Price dollars per pound) Quantity tons of hamburger] Quantity tons of hamburger) Figure A Figure B Price (dollars per pound) Price (dollars per pound) Quantity lions of homburger) Quantity tons of hamburger) Figure C Figure D 1)- The above figures show the market for hamburger meat. Which figure(s) shows the effect of a new report by the U.S. Surgeon General that beef consumption is healthier than previously believed? Figure 2)- The above figures show the market...
Question 5 If a market is in equilibrium, then all demanders receive the goods they want, and all suppliers sell the goods they want O demand curves and supply curves are the same at the equilibrium price, quantity demanded is equal to quantity supplied Question 6 If excess demand exists in a market, then the quantity demanded is higher than the quantity supplied and price falls the quantity demanded is higher than the quantity supplied and price rises the quantity...
Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily costs: Cost Labor $200 Ingredients $500 $100 $60 Rent Supplies $20 Utilities Based on that information her average total cost per day is $ per hamburger. Suppose that she knows that the marginal cost of a hamburger at her current level of output is $2. That implies that if tomorrow she increases her output then her average total cost w increase Check stay the...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 6 minutes ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 5 minutes ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 9 minutes ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 17 minutes ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 20 minutes ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 25 minutes ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 28 minutes ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 1 hour ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 43 minutes ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 47 minutes ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 58 minutes ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 50 minutes ago