Problem 1
In a local market, the monthly price of Internet access service
increases from $40 per account to $52 per account, and the total
quantity of monthly accounts across all Internet access providers
decreases from 1,000,000 to 600,000. See pages 418 – 419.
a. Assuming other things were equal, what is the price elasticity of demand? See EXAMPLE on 419.
b. Is demand elastic, unit-elastic, or inelastic? Please
explain.
c. How would you interpret the price elasticity calculated in
part a? See EXAMPLE on 419.
b)since the absolute value of elasticity is greater than it can be considered as relatively elastic in nature
c) since the price elasticity is more than 1 can be considered that it is relatively elastic in nature and as a result of this is not a necessity good but rather luxury good and the revenue can be increased by decrease in the price
Problem 1 In a local market, the monthly price of Internet access service increases from $40...
In a local market, the monthly price of Internet access service decreases from $40 to $30, and the total quantity of monthly accounts across all Internet access providers increases from 120,000 to 220,000. What is the value price elasticity of demand, expressed as a positive number? Is this demand inelastic or elastic ?
In a local market, the monthly price of Internet access service decreases from $40 to $30, and the total quantity of monthly accounts across all Internet access providers increases from 100,000 to 200,000. What is the value price elasticity of demand, expressed as a positive number? ____. (Round your answer to two decimal places.)
In a local market, the monthly price of Internet access service decreases from $35 to $25, and the total quantity of monthly accounts across all Internet access providers increases from 130,000 to 230,000. What is the value price elasticity of demand, expressed as a positive number? (Round your answer to two decimal places.)
In a local market, the monthly price of Internet access service decreases from S35 to $25, and the total quantity of monthly accounts across all Internet access providers increases from 150,000 to 250,000 What is the value price elasticity of demand, expressed as a positive number?(Round your answer to two decimal places)
In a local market, the monthly price of Internet access service decreases from $20 to $10, and the total quantity of monthly accounts across all Internet access providers increases from 90,000 to 190,000 What is the value price elasticity of demand, expressed as a positive number?(Round your answer to two decimal places)
In a local market, the monthly price of Internet access service decreases from $3030 to $2020, and the total quantity of monthly accounts across all Internet access providers increases from 100 comma 000100,000 to 200 comma 000200,000. What is the value price elasticity of demand, expressed as a positive number? nothing. (Round your answer to two decimal places.)
9.When price increase from $43 to $49, quantity supplied increases from 220 units to 240 units. The price elasticity of supply in this price range is (use the Midpoint Formula): Multiple Choice a.0.3 b.0.67 c.1.5 d.3.33 10. When any change in price results in an infinite change in quantity demanded: Multiple Choice a.price elasticity of supply is zero. b.demand is perfectly elastic. c.demand is perfectly inelastic. d.price elasticity of supply is infinite. 12. Over a longer period of time: Multiple...
Question 7 [20] 7.1. Suppose the average monthly income of households in Kagiso increases from R3 000 to R3 500. As a result, the quantity of white bread demanded increases from 1 200 to 1300 loaves per day, while the quantity of brown bread decreases from 2 100 to 2 000 loaves per day. The quantity of KFC pieces demanded also increases from 350 to 550 pieces per day. 7.1.1. Use the arc (midpoint) formula to calculate the income elasticity...
1. Explicit costs ______. do not involve outlays of cash are greater than implicit costs involve outlays of cash are less than implicit costs 2. Opportunity costs can vary from person to person and ______________________. can be calculated easily most of the time can even be different for the same person at different points in time are always known and predictable represent explicit costs only 3. An example of an implicit cost would be ______. transportation expenses salaries rental costs...
13) The cost the Almy type of market 7) The market is an example of A) mattress: a monopoly B) com a perfectly competitive C) car insurance an oligopoly D) cell phone; a perfectly competitive 5) airplane manufacturing a monopolistically competitive 8) What is the difference between perfect competition and monopolistic competition? A) Perfect competition has a large number of small firms while monopolistic competition does not in monopolistic competition, firms produce identical goods, while in perfect competition, firms produce...