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Elasticity

I need detailed answers illustrated with graphs.

1.By using the appropriate graph , can you explain and illustrate the transfer of consumer surpulus from a perfectly competitive firm to a monopolist. Please use the same graph to also show and explain the dead weight loss which results from monopoly. 2.By using a graph, can you illustrate the long run equilibirium of a firm

Multiplicative Exponential Demand Function

A regression model is being used to estimate demand for a type of candy. The following multiplicative exponential demand function is being used; Qd = 6280P^-2.15 A^1.05 N^3.70 ^ = raising to a power Qd = Qty demanded of candy P = price of candy per piece A = Advertising expenditure N = Population of children under th

Monopolistically: profit-maximizing prices

Please help with the following problem. A monopolistically competitive firm finds that the elasticity of demand facing its brand is -1.5, while its rival faces an elasticity of -2 for its brand. Both firms have a marginal cost of $5 per unit. Using the pricing rule of thumb, determine the profit-maximizing prices both

CLEP EXAM

Help me with the questions below? 1. When price is above the equilibrium level (as with a price floor), suppliers offer more than demanders wish to buy. T F 2. Suppose the numbers in parenthesis represent two points on a line: (59 billion quarts; $4) and (78 billion quarts; $6). The line is likely a a. production poss

4 econ. questions...

Just answers the questions below using some economic concepts. 1.) Find a real world example depicting price elasticity of demand. Be sure to explain how the concept of price elasticity demand would impact the seller's revenues should the seller choose to raise the price of the product. Please do not use the example for the q

ECONOMICS CLEP EXM STUDY

1. Which gives you a greater utility 12 gallons of water per day or 20 gallons of water per day? 2. At which level do you get a greater marginal utility: 12 gallons per day or 20 gallons per day? 3. A rise I the price of a certain commodity from $15 to $20 reduces quantity demanded from 20, 000 units to 5,000 units. Can y

events that can change supply and demand

1. You read in the paper a story about grapefruit markets. The story contains the following information: A. There has been a frost in the "Grapefruit belt" and a lot of lost plants. B. There is a new kind of fertilizer that can increase yields by 20% C. The International Union of Grapefruit Pickers and Packers has just neg

Functional forms of regression models

Based on 11 annual observations, the following regressions were obtained: ^ Model A: Y(sub t) = 2.6911 - 0.4795X(sub t) se = (.1216) (.1140) r^2 = .6628 ^ Model B: Y(sub t) = 0.7774 - .2530 ln X(sub t) se = (.0152) (0.0494) r^2 = 0.7448 where Y = the cups of coffee consum

Elasticity

Demand for cassette players can be characterized by the following:price elasticity=-2, cross-price elasticity with AAA batteries=-1.5, and income elasticity =3. Indicate if True or False and why: a.A price increase for cassette players will decrease both the number of units demanded and the total revenue of sellers. b. The cro

Elasticity

Demand for cassettes can be characterized by the following point elasticities:price elasticity =-2,cross price elasticity with aaa batteries is -1.5, and income elasticity =3. please explain the following statement. a. A 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in inco

Income Elasticity

During the past year,MP sold 150,000pairs of brake shoes at an average wholesale price of $13per pair. This year, GNP per capita is expected to fall from $21,000 to 19000 as nation enters a steep recession. Without any price change, MP expects current year sales to fall to 100,000. a. Calculate the implied arc income elastici

Demand Curve - Elasticity

Suppose that successive price reductions reduce total revenue. The supplier faces a demand curve that is, in this region: A) price elastic. B) unitary elastic. C) infinitely price elastic. D) of indeterminate elasticity. E) price inelastic.

Elasticity/Demand Curves

In 1979, in a isolated small town, 100,000 bricks were sold at $1.20 per brick. In 1980, 120,000 bricks were sold at $1.50 each in the same town. This data could provide evidence of: A) a totally elastic demand curve for bricks. B) an unitary elasticity of demand for bricks. C) a contraction in the supply of bricks ov

Supply: Price Elasticity

The price elasticity of supply shown in the diagram below, between points A and B is: A) 0.1 B) 0.5 C) 1.0 D) 5.0 E) none of the above

Price Elasticity

If at a price of $10, quantity bought will be 5400 per day, and at $15, quantity bought will be 4600 per day, then the price elasticity of demand is approximately: A) 0.2. B) 0.4. C) 0.6. D) 2.5. E) 6.0.

Elasticity estimation

Elasticity Estimation. Breakaway Tours, Inc., has estimated the following multiplicative demand function for packaged holiday tours in the Flushing, NY, market using quarterly data covering the past five years (20 observations). (ss) = subscript (SS) = superscript Q(ssy) = 5P(ssy)(SS-2.5)P(ssx)(SS1)A(ssy)(SS2)A(ssx)(SS1)I

Point Price Elasticity

If P1 =$5, Q1 =10,000, P2=$6 and Q2=5000, then at point P2 the point price elasticity Ep equals: a. -6 b. -2.5 c. -4.25 d. -0/12

Reply to Elasticity

The demand for Penn's oil motor oil can be characterized by the following point elasticities: price elasticity=-2.5,cross-price elasticity with Value Lean motor oil = 1.5,and income elasticity=0.75. Indicate whether statement is true or false and explain your answer. A 0.9%price reduction for Penn's Oil would be necessary to ov

Economics/Microeconomics

Please see the attached file for full problem description. Solutions:1 a) If Twinkies cost $0.10 each and Slice costs $0.25 per cup, what is his budget constraint? Write down the budget equation and draw the budget line: Budget constraint $0.10T + $0.25S = $1 to draw the budget line: for example consider this two

Production functions and cost

Please see the attached file for full problem description. --- Each day Paul, who is in third grade, eats lunch at school. He likes only Twinkies (T) and Orange Slice (S), and these provide him a utility of Utility = U (T, S) = Every day his mother gives him $1 to spend on lunch. Assume that it is possible to purchase fr

Price elasticity of supply

As price falls from $4 to $3, quantity supplied falls from 400 units to 350 units. Price elasticity of supply is: A) 0.95 B) 1.20 C) 2.22 D) .50

Microeconomics

A. Calculate the profit-maximizing activity level. B. Calculate the company's optimal profit and return-on-sales levels. A. When quantity is expressed as a function or price, what are the Florida demand and supply curves if p = $11, Ps = $5, Y = $12,000 billion, T = 75 degrees, and PI = $6, and PK = 12.5%. B. Calculate the

Textbook:- Economics-The Essentials Chapter-2 Synopsis

How supply and demand analysis can be extended to illuminated many issues such as low incomes in agriculture and the pattern of taxation by government; How selfish behaviour in a market system acts like the "invisible hand" of a social planner to allocate society's resources efficiently; and How the invisible hand fights back

Elasticity of demand

Sample question and answer for determining the elasticity of demand, sample application of elasticity of demand formula. See the attached file.