The price for product A increases from $20 to $23. The quantity demanded for product B...
Homework Answers
For product B, cross price
elasticity is negative which shows that the products A and B are
complements. Because increase in price of A product is reducing the
quantity demanded of product B.
For product C, cross price elasticity is positive which shows that increase in price of A is causing increase in demand of good C. Hence C is a substitute of A.
Add Answer to:
The
price for product A increases from $20 to $23. The quantity
demanded for product B...
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10...
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
Suppose the price of widgets increases from $15 to $20 and the quantity demanded decreases from...
Suppose the price of widgets increases from $15 to $20 and the quantity demanded decreases from 100 to 50 units. Calculate the elasticity of demand using the midpoint method. Round your answer to the nearest 2 digits and do NOT take the absolute value.
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...
A product has a price elasticity (of demand) equal to -1.50. If price increases by 8...
A product has a price elasticity (of demand) equal to -1.50. If price increases by 8 percent, what will be the decrease in quantity demanded? A product has an income elasticity of 0.8. If income rises by 6 percent, what will be the increase in demand? In question 2, is the product most likely a luxury or necessity? Why? The cross price elasticity between two products, L and M, is 0.60 (that is, the change in demand for L with...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...
1. A product has a price elasticity (of demand) equal to 1.50. If price increases by...
1. A product has a price elasticity (of demand) equal to 1.50. If price increases by six percent, what will be the decrease in quantity demanded? 2. A product has an income elasticity of 0.75. If income rises by 8 percent, what will be the increase in demand? 3. In question 2, is the product most likely a luxury or necessity? Why? 4. The cross price elasticity between two products, L and M, is 0.40 (that is, the change in...
A2 percent rise in the price of orange juice decreases the quantity of orange juice demanded...
A2 percent rise in the price of orange juice decreases the quantity of orange juice demanded by 10 percent and increases the quantity of apple juice demanded by 12 percent. Calculate the price elasticity of demand for orange juice and the cross elasticity of demand for apple juice with respect to the price of orange juice. >>> Answer to 1 decimal place. The price elasticity of demand for orange juice is 0.14
Suppose the price of salt increases by 20 percent and, as a result, the quantity of...
Suppose the price of salt increases by 20 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 2 percent The cross-price elasticity of demand between salt and pepper is(Enter your response rounded to two decimal places and include a minus sign if appropriate) In this example, salit and pepper are Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between salt and pepper would be...
When the price increases from $4 to $6 and the quantity demanded decreases by 2 units...
When the price increases from $4 to $6 and the quantity demanded decreases by 2 units from 10 to 8, the price elasticity of demand is a)-25 b)-1.5 c)-0.56 d)-2.5 e)cannot be determined from the information given
The price of burgers decreases from $5 to $3, and the quantity demanded increases from 9...
The price of burgers decreases from $5 to $3, and the quantity demanded increases from 9 to 11. What is the price elasticity of demand using the mid point method?
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
A2 percent rise in the price of orange juice decreases the quantity of orange juice demanded by 10 percent and increases the quantity of apple juice demanded by 12 percent. Calculate the price elasticity of demand for orange juice and the cross elasticity of demand for apple juice with respect to the price of orange juice. >>> Answer to 1 decimal place. The price elasticity of demand for orange juice is 0.14
Suppose the price of salt increases by 20 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 2 percent The cross-price elasticity of demand between salt and pepper is(Enter your response rounded to two decimal places and include a minus sign if appropriate) In this example, salit and pepper are Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between salt and pepper would be...
Most questions answered within 3 hours.
-
•Describe the basic structure of collagen monomers •Explain how
amino acid composition of collagen contributes to...
asked 36 minutes ago -
Compute the sample correlation coefficient
r for each of the following data sets.
(Use 3 decimal...
asked 1 hour ago -
5a. What are the advantages and disadvantages of Proxy ARP?
b. What is the TTL field...
asked 1 hour ago -
An ice cube (density = 900[kg/m3]) with a side length of
2.54[cm] is held by a...
asked 2 hours ago -
would you say that leaders in the international context are born
or made? That is, can...
asked 2 hours ago -
Instructions
Read the Digital Trends article "Solid state drives are speedier
than hard disk drives. Are...
asked 3 hours ago -
A multiple-choice test consists of 29 questions with possible
answers of a, b, c, d. Estimate...
asked 3 hours ago -
Question 1: Ethanol is the active ingredient of alcoholic
beverages. It is also s a possible...
asked 3 hours ago -
In the process of a simple distillation, the substances in the
still head tube are in...
asked 3 hours ago -
In a normal distribution with mean 3 and standard deviation of
7, what are the upper...
asked 3 hours ago -
A big block stone with mass M explodes and splits in two pieces
with mass 0.40M...
asked 3 hours ago -
Discuss the role of women in the late 19th century. In what ways
were the roles,...
asked 3 hours ago