4. Assume the demand for product is: Q = 45 + (-3)*P a. Find the point elasticity at price = 8 (show your work) b. Find arc elasticity between price = 10 and price = 12 (show your work)
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- Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?What is the formula for line cross-price elasticity of demand?Problem 03-04 (algo) Suppose the own price elasticity of demand for good X is -3, its income elasticity is -3, its advertising elasticity is 4, and the cross- price elasticity of demand between it and good Yis 2. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 7 percent. percent b. The price of good Yincreases by 9 percent. percent C. Advertising decreases by 2 percent. percent d. Income increases by 5 percent. percent
- Microeconomics Assignment 5 Elasticity and its Application [10 points] Johnson & Johnson recently reduced the price of "Generic A" from $100 to $60 in New Jersey area market and enjoyed a resulting increase in sales from 600 to 1800 units per day. Sales of "Generic B" also increased from 300 to 1500 units per day. 1 Calculate the arc-price elasticity of demand for Generic A. You also need to interpret the elasticity. 2 Calculate the arc-cross-price elasticity of demand for Generic B. You also need to interpret the elasticity. 3 Is Generic B a "complement" or a "substitute"?I need d,e,f solved 1. Suppose John, the owner-manager of a local hotel, projects the following demand for his rooms: Price ($) Quantity Purchased (per Night) Total Revenue 90 100 110 90 130 70 (a)Calculate the price elasticity of demand between $90 and $110. (Use the midpoint formula) (b)Is the price elasticity of demand between $90 and $110 elastic, unit elastic, or inelastic? (c)Will John’s total revenue rise if he increases the price from $90 to $110?…18) Suppose that you know that the price elasticity of demand is 1.3. If we increase the price of the this product, then the total revenue will (select one): increase remain unchanged decrease
- 6. Monorail Services The demand for monorail service in Las Vegas in 2005 could be approximated by q=-4,500p+41,500 rides per day when the fare was $p. a. In September 2005 the Las Vegas monorail increased the price from $3 per ride to $5 per ride. What was the effect on the price elasticity of demand? What does the answer suggest about the fare corresponding to maximum daily revenue? b. What would you have advised the Las Vegas Monorail Company to charge to maximize total daily revenue, and what would the resulting daily ridership and revenue have been? hp1. Al Niel Restaurant reduced their price by 10%. This resulted in 70% change in quantity demanded. Calculate the price elasticity of the product and analyze the degree of elasticity. Draw the elasticity curve for the scenarioA rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. Kindly Answer ONLY (d) a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity.b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.
- QUESTION 1 Suppose we know that the price elasticity of demand for organic carrots is -1.5. If a grocer decreases the price of organic carrots by 12%, what would we expect to happen to the quantity of organic carrots purchased? Decrease by 18% O Decrease by 6% O Increase by 6% Increase by 8% Increase by 18% 0001. Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 12000) Demanded (Income: 16000) 10 32 90 20 16 40 40 15 80 4 7 160 3 a) Calculate the price elasticity of demand for CDs when price increases from 20 to 40 and income is Tk.16000. b) Calculate the income elasticity of demand for CDs when price is 10. c) How will the total revenue change when price of CDs decreases and the income is 12000, explain.1. Mark's demand for chicken is given as follows: Price of Chicken Quantity demanded per week Quantity demanded per week (Income = P800) (Per kilo) P100 110 (Income = P500) 10 kilos 8 12 kilos 11 120 10 130 a. Compute for his price elasticity of demand as the price of chicken falls from P120 to P110 if his income is P500. (Use the Midpoint Method) b. Compute for his price elasticity of demand as the price changes from P120 to P130 if his income is P800. (Use the Midpoint Method) c. Compute his income elasticity of demand as his income changes from P500 to P800 is the price of chicken is P100.
