Yesterday, a pairs of UGG boots cost $200, and Tom Brady was willing to buy 2...
- Yesterday, a pairs of UGG boots cost $200, and Tom Brady was willing to buy 2 pairs. Today, UGG boots are on sale for $150, and Tom is now willing to buy 4 pairs. Is Tom’s demand for UGGs elastic or inelastic? What is Tom’ elasticity of demand? (SHOW YOUR WORK)
Homework Answers
Elasticity of demand = % change in quantity demanded / % change in price
Elasticity of demand = ((4-2)/(4+2)/2)/((150-200)/(150+200)/2) " midpoint elasticity formula is used."
Elasticity of demand = -2.33
Here, the demand is relatively elastic in nature, as value of elasticity is greater than 1 ( in absolute terms).
Add Answer to:
Yesterday, a pairs of UGG boots cost $200, and Tom Brady was
willing to buy 2...
Class work CH4 Yesterday, the price of envelopes was $3 a box, and Julie was willing...
Class work CH4 Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes a. Calculate Julie's Elasticity of demand? (1pt) b. Specify which type of elasticity and interpret your answer? (1pt) 1 Styles b. Specify which type of elasticity and interpret your answer? (Ipt) C. Explain the values Price elasticity of demand can range...
2) Your friend Tom is deciding whether to buy a new car. The Honda that he...
2) Your friend Tom is deciding whether to buy a new car. The Honda that he wants will cost $25,000, with annual costs of $1,000 per year, with an estimated salvage value of $5,000 ten years from now. His current used car could be sold for $5,000 today, with the salvage value decreasing by $1,000 for each additional year. Annual costs are currently $2,000, but are expected to increase by $500 per year. Tom anticipates that his old car could...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...
1) If the quantity demanded of one good increases from 200 to 300 when the price...
1) If the quantity demanded of one good increases from 200 to 300 when the price of another good increases from $5 to $7, what is the Cross-Price Elasticity of Demand? a: -.4 b: 1.21 c: -1.21 D: .33 2) If the quantity demanded decreases from 480 to 460 when the price increases from $2 to $2.10, the price elasticity of demand in absolute value is: A: .88, B: 4.3 C: 1.14 D: 1.49 Based on your answer above, demand...
(8 Points) California decides to introduce a tax on the sale of marijuana. Assume the elasticity...
(8 Points) California decides to introduce a tax on the sale of marijuana. Assume the elasticity of demand is -0.5, and that supply is perfectly elastic. a) If the tax increases the price of marijuana by 100%, what will happen to the amount that is sold? b) Suppose marijuana is addictive, and that consumers who choose to buy it are rational addicts. Explain what the theory of rational addition predicts will happen to the quantity sold today if the tax...
Answer the following questions and show all working. Use the midpoint formula to calculate elasticities. 1. ...
Answer the following questions and show all working. Use the midpoint formula to calculate elasticities. 1. If the price elasticity of demand is 4.0 (in absolute terms), then a 10% off sale would lead to what change in quantity demanded? Let’s say customer purchases were 200,000 before the sale, what would be the total number of customer purchases after the sale? (4) show working 2. The price of stadium seats at a baseball game increases from $20 to $30 and...
PLEASE READ VERY CAREFULLY!! SHOW ALL THE CALCULATIONS! AND LIST ALL THE TOTAL REVENUE COORDINATE POINTS!!...
PLEASE READ VERY CAREFULLY!! SHOW ALL THE CALCULATIONS! AND LIST
ALL THE TOTAL REVENUE COORDINATE POINTS!!
ANSWER OPTIONS FOR NUMBER 1: 0, 0.6, 1.67,
75.02
2. ELASTIC, UNIT ELASTIC, INELASTIC
3. A DECREASE, AN INCREASE, NO CHANGE
4. ELASTIC, UNIT ELASTIC, INELASTIC
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 2...
The following is a list of housing costs in five different countries along with their CPI. ...
The following is a list of housing costs in five different countries along with their CPI. What is the real cost of year 1 housing using year 2 as the base year for the above 5 countries? (5 points) For which country is the real cost of housing declining? (2 points) 2. The market for gravel has been estimated to have these supply and demand relationships: Supply Qs= -1000+100P Demand Qd= 100,000 – 100P where P represents price per unit in dollars, and...
Give an example of a good you purchased for which your own demand is elastic and...
Give an example of a good you purchased for which your own demand is elastic and another example of a good for which your demand is inelastic. (Tip: if you are having a tough time thinking of products or services you bought, think back to your purchases within the last 3 months. See example in Point 1 below.) Share with the class: 1.What two products or services did you buy? State whether they are elastic or inelastic, estimate their elasticity coefficient...
Class work CH4 Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes a. Calculate Julie's Elasticity of demand? (1pt) b. Specify which type of elasticity and interpret your answer? (1pt) 1 Styles b. Specify which type of elasticity and interpret your answer? (Ipt) C. Explain the values Price elasticity of demand can range...
(8 Points) California decides to introduce a tax on the sale of marijuana. Assume the elasticity of demand is -0.5, and that supply is perfectly elastic. a) If the tax increases the price of marijuana by 100%, what will happen to the amount that is sold? b) Suppose marijuana is addictive, and that consumers who choose to buy it are rational addicts. Explain what the theory of rational addition predicts will happen to the quantity sold today if the tax...
PLEASE READ VERY CAREFULLY!! SHOW ALL THE CALCULATIONS! AND LIST
ALL THE TOTAL REVENUE COORDINATE POINTS!!
ANSWER OPTIONS FOR NUMBER 1: 0, 0.6, 1.67,
75.02
2. ELASTIC, UNIT ELASTIC, INELASTIC
3. A DECREASE, AN INCREASE, NO CHANGE
4. ELASTIC, UNIT ELASTIC, INELASTIC
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 2...
Most questions answered within 3 hours.
-
26) Briefly describe, using words or simple diagrams, the
chemiosmotic theory for coupling oxidation to phosphorylation...
asked 3 minutes ago -
Suppose that XX is a random variable with mean 16 and standard
deviation 5 . Also...
asked 55 minutes ago -
Calculate the number density of argon gas at a temperature of
24C and a pressure of...
asked 4 hours ago -
Alternative
Classification
How to Estimate
Probabilities from Data? ( For continuous Attributes)
And How to generate...
asked 4 hours ago -
An explosion breaks a 20.0-kg object into three parts. The
object is initially moving at a...
asked 5 hours ago -
Calculate the approximate number of residues of Rubisco, which
is involved in carbon fixation in plants,...
asked 6 hours ago -
Other decisions about scientific claims can have a much broader
impact.ENERGYarrow-10x10.png, environment, health, security - all...
asked 6 hours ago -
I need to write a research paper and work cited about this
topic: The United States...
asked 7 hours ago -
Hello! I was wondering if I could have some help?
If the vapor pressure of carvone...
asked 7 hours ago -
An economist wants to estimate the mean per capita income (in
thousands of dollars) for a...
asked 7 hours ago -
What would be the input/output characteristic of a circuit
obtained by putting two of your 2's-complementers...
asked 7 hours ago -
In Drosophila, the transition from the syncytial blastoderm
stage to the cellular blastoderm stage is a...
asked 8 hours ago