Question

pls do provide calculation and explain thank you !

Complete in pencil only. Your accurate work and formulas must be shown to earn full credit. Answers only will not earn credit. 1. Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. Suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service decreases to 11,000. Suppose also that when the average income increases to $60,000, the quantity demanded of mobile service increases to 33,000 Considering the income elasticity, what type of good is mobile telephone service? 2. Consider the markets for mobile and landline telephone service. Suppose that when the average income of residents of Plainville is $55,000 per year, the quantity demanded of landline telephone service is 12,500 and the quantity demanded of mobile service is 28,000. Suppose that when the price of mobile service rises from $100 to $120 per month, the quantity demanded of landline service decreases to 11,000. Suppose also that when the average income increases to $60,000, the quantity demanded of mobile service increases to 33,000 Are mobile phones and landline telephones competitors? Support your answer 3. Suppose the price elasticity of supply for minivans is 0.3 in the short run and 1.2 in the long run. If an increase in the demand for minivans causes the price of minivans to increase by 5%, what is the result in terms of the quantity supplied of minivans?

Answer 1

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Exy o Conaplemente BY buses, demand der ala Hagy Parse substifuter mot are E 1.2 0.3 Es = .49s . 4P 5Y. Short runj O.8- 59. 1.5 7 Vaupeid iereases /1-59 Susentiy Tumj 1.2: 51. .A9S6.0