7.1) -0.25
Own price elasticity of demand = (dx/dpx)*(px/x)
dx/dpx = -2
So, Own price elasticity of demand = (-2)*(100/800) = -0.25
7.2) -2
Own price elasticity of demand = (dx/dpx)*(px/x)
dx/dpx = -2(0.7p-2-1) = -1.4p-3
So, Own price elasticity of demand =
(-1.4p-3)*(p/0.7p-2) =
-2p-3+1+2 = -2p0 = -2
7.3) 0.75
Own price elasticity of demand = Percentage change in demand of
x/Percentage change in price of y = -9.75/(-13) = 0.75
7.4) D Need more information to answer the question.
(We need to know the percentage change in quantity.)
The demand function for good X is as follows: X= 25 + 5Py + 5B -2Px A. What is the slope of this demand curve? B. If Px=10, Py=3, and B= 10 derive the: a. Own demand elasticity at these values b. Cross elasticity at these values c. Income elasticity at these values. C. Is good X elastic or inelastic at these values for income, price of good Y and price of good X? Is good Y a substitute or complementary good? And, is good X an...
2. The demand curve for a product is given by Qdx= 1,000-2px .02Pz, where Pz= $400a. What is the own price elasticity of demand when Px= $154? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided tochange a price below $154?b. What is the own price elasticity of demand when Px= $354? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided tocharge...
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Robert's demand curve for good X is given by the equation X 100 - 2Px 5 points) a. What is the elasticity of demand at the point X-20, Px -40 (5 points) b. If price falls from Px-40 to Py -35, what happens to total spending for X and what does this imply about the elasticity of demand? 5 points) c. Compute the elasticity to verify the answer.
Robert's demand curve for good X is given by the equation X 100 - 2Px 5 points) a. What is the elasticity of demand at the point X-20, Px -40 (5 points) b. If price falls from Px-40 to Py -35, what happens to total spending for X and what does this imply about the elasticity of demand? 5 points) c. Compute the elasticity to verify the answer.
Chapter 3 Problems Saved Help Save & Exit Submit Check my work 2 The demand curve for a product is given by ox 1200-3Px- 01Pz where P2 $300. a. What is the own price elasticity of demand when Px $140? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price below $140? 10 points Instruction: Enter your response rounded to two decimal places. eBook Own price elasticity Print...
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The demand curve for product X is given by QXd = 300 - 2PX. a. Find the inverse demand curve. PX = - QXd Instructions: Round your answer to the nearest penny (2 decimal places). b. How much consumer surplus do consumers receive when Px = $45? $ c. How much consumer surplus do consumers receive when Px = $30? $ d. In general, what happens to the level of consumer surplus as the price of a good falls?
Question 4 2.5 pts When incomes in a given country went from $50,000 to $70,000, demand for a certain type of pasta went from 1 million to 1.2 million. Calculate the appropriate type of elasticity, using the methodology in the Power Points. You will interpret your answer in the next question. Enter only numbers, a decimal point and/or a negative sign as needed. Round your answer to two decimal places as necessary, when rounding on intermediate steps, use four places....