The cross price elasticity of demand between hamburgers and hot dogs = % change in quantity demanded of hamburgers/% change n price of hot dogs = 31%/10% = 3.1.
For this information, we can say that hamburgers and hot dogs are substitutes to each other.
Explanation: When two goods are substitutes, the cross price elasticity of the goods is positive.
During the summer months, Bruce's Market anticipates that the price of hot dogs will increase by 10% and the demand for...
Suppose the elasticity of demand for mustard with respect to the price of hot dogs is −0.5. This means that a 10 percent rise in the price of hot dogs will cause the quantity of mustard demanded to: Increase by 5% Increase by 20% Decrease by 5% Decrease by 20% Increase by 15% Decrease by 15%
In the graph on the right, the demand curve for hamburger buns has shifted outward because the price of hamburgers has fallen from $3.50 to $2.50 per pack. Hamburger buns Calculate the cross-price elasticity of demand between hamburgers and hamburger buns. Use the midpoint formula (Enter your response as a real number rounded to two decimal places. Be sure to The cross-price elasticity of demand is include a minus sign if necessary.) Price (dollars per pack of buns) 10 000...
End of Chapter 1.8 Question Help You own a hot dog stand that you set up outside the student union every day at lunch time. Currently you are selling hot dogs for a price of $3, and you sell 30 hot dogs a day (point A on the diagram to the righ). You are considering cutting the price to $2. The graph to the right shows two possible increases in the quantity sold as a result of your price cut....
(Enter your response rounded to If a 10 percent increase in the price of tennis rackets decreases the quantity demanded of tennis balls 15 percent, the cross-price elasticity of demand is two decimal places and include a minus sign if necessary.) In this case, tennis rackets and tennis balls are considered to be
and the two goods are If a 17 percent increase in the price of good B decreases the quantity of good A demanded by 12 percent, the cross-price elasticity of demand for good A is (Enter your response rounded to two decimal places and include a minus sign if necessary.)
QUESTION 10 Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then the quantity demanded of hot dog buns will increase. the demand for hot dogs will increase. the quantity demanded of hotdogs will decrease. the demand for hot dog buns will increase. 2 points QUESTION 11 Refer to the above figure when answering the following questions. Assume that the above figure represents the market for denim jeans. Which panel represents the...
uppose the demand curve for a product is given by Q = 18 - 2P+1PS where is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.80. Suppose P 5050. The price elasticity of demand is -0.05. (Enter your response rounded to two decimal places) The cross-price elasticity of demand is 0.14. (Enter your response rounded to two decimal places.) Suppose the price of the good, P goes...
The demand curve for a product is given by QXd = 1,200 - 3PX - 0.1PZ where Pz = $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? Instruction: Enter your response rounded to two decimal places. Own price elasticity: Demand is: If the firm prices below $140, revenue will: b....
If a 21 percent increase in the price of Cheerios causes a 27 percent reduction in the number of boxes of cereal demanded the price elasticity of demand for Cheerios is (Enter your response rounded to two decimal places.) The demand for Cheerios is
Suppose that legalizing the use of
heroinheroin
would decrease its price by
8181
percent. If the price elasticity of demand for
heroinheroin
is
-2.502.50,
what would be the percentage increase in the quantity of
heroinheroin
demanded from legalizing
heroinheroin?
nothing
percent. (Enter a numeric response using a real number rounded
to two decimal places.)
Suppose instead that the price elasticity of demand for
heroinheroin
is
-0.240.24.
What would be the percentage increase in the quantity of
heroinheroin
demanded from legalizing...