Homework Answers
Answer : Here the demand is inelastic in both Texas and Florida. In case of inelastic demand raising price increase the revenue. Hence here orange farmers should increase the price level in both Texas and Florida. But orange farmers should increase the price level more in Texas than Florida. Because in Texas the demand is more inelastic than Florida.
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Suppose the price elasticity of demand for oranges equals -0.2 in Texas and -0.4 in Florida. To increase revenue, orang...
Assume I am looking at the demand for Florida oranges. What happens to Demand in the...
Assume I am looking at the demand for Florida oranges. What happens to Demand in the following scenarios? For each scenario, draw a graph and its changes, and explain reasons why. 1. scenarios a)-d) a) Price of nectarines increases. b) Rumors or news that there may be a harmful bacteria outbreak at Florida plantations. c) Price of Florida oranges decreases d) Texas breaks away from the U.S. continental, and can no longer trade with Florida.
Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63...
Suppose the price elasticity of demand for fishing lures equals 1.5 in South Carolina and 0.63 in Alabama. To increase revenue, fishing lure manufacturers should: a lower prices in South Carolina and raise prices in Alabama. b raise prices in each state. c lower prices in each state. d leave prices unchanged in South Carolina and raise prices in Alabama.
18) Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the price elastic...
18) Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price? A) 4% B) 5% C) 15% D) 20% 19) Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4 %. What is the price elasticity of supply? A) 0 B)...
The own-price elasticity of demand for oranges is -4.5. If the price of oranges decreases by...
The own-price elasticity of demand for oranges is -4.5. If the price of oranges decreases by 2%, what will happen to the quantity of oranges demanded? a. It will rise 9% b. It will rise 2.25% c. It will fall 9% d. It will fall 2.25% SHOW ALL WORK; state your formula and insert the values given to arrive at your answer?
Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive and that...
Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive and that the market price for a crate of oranges is $10 per crate. Fill in total revenue, average revenue, and marginal revenue in the table below. (Enter your responses as integers.) Crates of Oranges Market Price (per crate) $10 Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR)
In which of the following situations will total revenue increase? a. Price elasticity of demand is...
In which of the following situations will total revenue increase? a. Price elasticity of demand is -1.2, and the price of the good increases. b. Price elasticity of demand is -0.5, and the price of the good increases. c. Price elasticity of demand is -3.0, and the price of the good increases. d. We don't have enough information to determine total revenue. e. None of the above are correct.
Suppose that the price elasticity of demand for heating oil is 0.2. If the price of...
Suppose that the price elasticity of demand for heating oil is 0.2. If the price of heating oil rises from $1.80 to $2.20 per gallon, what will happen to the quantity of heating oil demanded in the short-run?
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately...
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? If the price of grapefruit juice rises by $1.6 more cartons of orange juice will be purchased. A1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption A6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption The demand for orange...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government wants to follow a policy of increasing income for farmers. To accomplish this goal, the government will promote the programs that.........(increase or decrease) the price of farm products, knowing that the percentage change in price will be......…...(exactly the same as, Greater than, or smaller than) the percentage........(increase or Decrease) in quantity. 2. Suppose the price elasticity of demand for used cars is estimated to...
A linear downward-sloping demand curve has price elasticities (in absolute values) that increase as price decreases....
A linear downward-sloping demand curve has price elasticities (in absolute values) that increase as price decreases. remain constant along the demand curve. decrease as price decreases. are greater than or equal to 1. Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand? 0,11 0.37 9.33...
18) Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price? A) 4% B) 5% C) 15% D) 20% 19) Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4 %. What is the price elasticity of supply? A) 0 B)...
Farmer Jones grows oranges in Florida. Suppose the market for oranges is perfectly competitive and that the market price for a crate of oranges is $10 per crate. Fill in total revenue, average revenue, and marginal revenue in the table below. (Enter your responses as integers.) Crates of Oranges Market Price (per crate) $10 Total Revenue (TR) Average Revenue (AR) Marginal Revenue (MR)
Question 1 Suppose the cross-price elasticity of demand between grapefruit juice and orange juice is approximately 6. What does this mean? If the price of grapefruit juice rises by $1.6 more cartons of orange juice will be purchased. A1 percent decrease in the price of grapefruit juice leads to a 6 percent increase in orange juice consumption A6 percent increase in the price of grapefruit juice leads to a 1 percent increase in orange juice consumption The demand for orange...
A linear downward-sloping demand curve has price elasticities (in absolute values) that increase as price decreases. remain constant along the demand curve. decrease as price decreases. are greater than or equal to 1. Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand? 0,11 0.37 9.33...
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