Directions: Calculate the cross price elasticity of demand for each market. Classify results as elastic, inelastic,...
Directions: Calculate the cross price elasticity of demand for each market. Classify results as elastic, inelastic, unit elastic for each.
- Market for tablets has an increase in the quantity demanded by 35% as the price of the keyboards declined by 24%.
- Market for videogame consoles has an increase in quantity demanded by 78% as the price of videogames declined by 23%.
- Market for footwear has an increase in the quantity demanded by 6% as the price of socks declined by 7%.
- Market for flat screen TVs has a decline in quantity demanded by 9% and the price of DVRs rose by 9%.
3. A free market is described by Qd= 1250-5p and Qs= -650+14p
- Calculate the Consumer Surplus and Producer Surplus for this free market. (2 pts)
- Government imposed a price to this free market equal to $80 does this market experience a shortage or surplus? Explain the effect on the market. (2 pts)
- How is Consumer and producer surplus effected by this $80 imposition? Show on graph. (2pts)
Homework Answers
![a (footwear) toto $7.1 IPED = + 0.85 finie; I PED el] so melastic PED = - 2 - 1 TPED - 1] Since [DED = 1] So unit elastic](http://img.homeworklib.com/questions/1c971760-7a77-11ea-ac8e-c933fb03aa94.png?x-oss-process=image/resize,w_560)
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Directions: Calculate the cross price
elasticity of demand for each market. Classify results as elastic,
inelastic,...
w iece Department 1. Qc-400-10p and Qs-200+20p describes a market for safety pins. Midterm FA 2019...
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33. A product that has a negative income elasticity of demand is a. a complement good....
33. A product that has a negative income elasticity of demand is a. a complement good. b. a normal good. c. a substitute good d. an inferior good. Suppose the Chicago Enforcers football team increases ticket prices by 10 percent and as a result the quantity of tickets demanded decreases by 7 percent. This response means that the demand for Enforcers tickets is a. unit clastic. b. elastic c. perfectly elastic. d. inelastic. 34. 35. When a market reaches allocative...
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5. Consider a market in which demand and supply have the following functional forms: The free-market equilibrium is at P = $24 and Q = 12. Qd = 24-1/2PB and Qs = -12+PS a. Graph the free market equilibrium in the space below. Label the curves and show the values of ALL intercepts (show your work to find them). b. Now suppose that the Government decides to impose a $6 per-unit subsidy in this market. Calculate the price paid by...
Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply...
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w iece Department 1. Qc-400-10p and Qs-200+20p describes a market for safety pins. Midterm FA 2019 A. Find equilibrium price and quantity for this free market. (Illustrate graphically all points.) B. Illustrate an increase in the cost of labor on your graph. 2. Directions: Calculate the cross price elasticity of demand for each market C ity results elastie, inelastic, unit elastie for each A. Market for tablets has an increase in the quantity demanded by 49N as the price of...
33. A product that has a negative income elasticity of demand is a. a complement good. b. a normal good. c. a substitute good d. an inferior good. Suppose the Chicago Enforcers football team increases ticket prices by 10 percent and as a result the quantity of tickets demanded decreases by 7 percent. This response means that the demand for Enforcers tickets is a. unit clastic. b. elastic c. perfectly elastic. d. inelastic. 34. 35. When a market reaches allocative...
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Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply curves for tangerines in Sudan. Suppose Sudan's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Sudan in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply curves for tangerines in Guatemala. Suppose Guatemala's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Guatemala in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
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