2. The Inquiry Club at Jefferson University has compiled a book which exposes the sordid private lives of many of the professors on campus. Economics majors in the club estimate total revenue from sales of the book is given by the equation: TR = 120Q -0.1Q³ a. Over what range of sales is demand elastic? b. Initially, th
1. A market consists of two individuals. Their demand equations are Q1 = 16-4P and Q2 = 20-2P respectively. a. What is the market demand equation? b. At a price of $2, what is the point price elasticity for each person and for the market?
The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Q stands for quantity and P stands for price. a. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points? b. Calculate arc elasticity at the interval between P = 5 and P = 6. c. At which price w
5. The McNight company is a major producer of steel. Management estimates that the demand for the company's steel is given by the equation: Qs=5,000-1000Ps + 0.1I + 100 Pa Where Qs is steel demand in thousands of tons per year, Ps is the price of steel in dollars per pound, I is income per capita, and Pa is the price of alu
3. Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result, the demand for Acme pipe tobacco increases to 6,000 pounds per year. a. What is the cross elasticity of demand for pipes and pipe tobacco? b. Assuming t
1. A consultant estimates the price-quantity relationship for New World Pizza to be P=50-5Q. a. At what output rate is demand unitary elastic? b. Over what range of output is demand elastic? c. At the current price, 8 units are demanded each period. If the objective is to increase total revenue, should the price be increa
The demand equation faced by DuMont Electronics for its personal computers is given by P=1000-4Q. a. Write the marginal revenue equation. b. At what price and quantity will marginal revenue be zero? c. At what price and quantity will marginal revenue be maximized? d. If price is increased from $6000 to $7000 what will the ef
Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to s
9. Suppose that the firm's cost function is given in the following schedule (where Q is the level of output). Output Q (units) Total Cost 0 7 1 25 2 37 3 45 4 50 5 53 6 58 7 66 8 78 9 96 10 124 Determine the: (a) Marginal cost schedule (b) Total cost schedule 11. The British Automob
1. Which of the following statements concerning marginal utility is (are) true? a. marginal utility measures the satisfaction the individual receives from a given incremental change in wealth b. marginal utility is given by the reciprocal of the slope c. a and b d. none of the above 2. Identify the reasons why the qua
1. Money demand in an economy in which no interest is paid on money is M^d / P = 500 + 0.2Y - 1000i. a) Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand, nominal money demand, and velocity. b) The price level doubles from P = 100 to P = 200. Find real money demand, nominal money demand, and velocit
High-Time, Inc. manufactures medium proceed plastic wrist watches. High-time is considering lowering the price of its watches from the current $14 per unit to $10 per unit. High-Time currently sells 18,500 units per month. The firm's marketing department estimates the price elasticity of demand to be -2.5 over this price r
If good"X" has a price elasticity of demand equal to "2" and good "Y" has a coefficient equal to "1.5", which has a more elastic demand? WHY?
Monthly demand for juice by consumer is given by Q=10-8P a. If the price of juice is $1 per can, how much/many juice will the consumer purchase in a typical month? Here I just substituted $1 in for P, so the quantity demand at $1 for juice would be Q=2 b. What is the elasticity of demand for juice? i have the formula t
I am trying to find out more about the airline industry. I know since 9/11 and the war the airline industry has been affected by gas prices and security threats, etc. In the airline industry, there have been shifts in price elasticity of supply and demand. Is the price considered elasticity or inelastic? What is the price elasti
Price/Cost Markup - Elasticity of Demand. See attached file for full problem description.
1. What is "tax incidence"? Describe how a $1 per gallon increase in the gas tax will result in an after-tax price increase that is less than $1 2. How does the increase in the after-tax price depend on the price elasticity of demand and the price elasticity of supply? 3. Burning gasoline creates pollution? Is this p
In terms of home building and the construction industry, discuss how a current/past event has resulted in a change in price elasticity of supply and demand. Does it make public goods or common resources? In this industry, is price elasticity of demand though of as elastic or inelastic? Are there any available substitutes?
1. Inelastic demand means: a. the percentage change in price exceeds the percentage change in quantity purchased. b. this good would be a poor choice for taxation. c. the change in price divided by the change in quantity is less than one. d. the good is a necessity. 2. Prices for artificial flowers have fallen by 10 perc
The demand for eggs is estimated by x=10000+.00002I - 2000px where px is the price of eggs i is the mean income of the area in thousands Initially, i =50,000 and px =3.00 What is the elasticity of demand given the price and income combination? Suppose the price goes up to $4, using consumers surplus, estimate the we
Where does cross-price elasticity information become more important, in a competitive industry with a lot of sellers, or a more oligopolic industry with few sellers. Detailed explanation and graph if applicable.
Draw out multiple demand graphs and identify and explain and affect on quantity and price: 1) Elastic Demand Curve, 2) Perfectly Inelastic Demand Curve, 3) Perfectly Elastic Demand Curve, and 4) Unit Elasticity.
I must know the formulas that are used and I must have the calculations. Problem 2 A firm has kept track of the quantity demanded of its output (good X) during four time periods. The price of Z and the prices of two other goods (good Y and good Z) were also recorded for each time period. The information if provided in the
Have this regression with the following results: y Coef. Std. Err. t P>t [95% Conf. Interval] age -.0313208 .0048588 -6.45 0.000 -.0408444 -.0217972 age2 .0005537 .0000652 8.50 0.000 .000426 .0006815 black -.9694474 .0396784 -24.43 0.000 -1.04722 -.8916744 female .4468672 .0279172 16.01 0.000 .3921472 .5015872
Analyze the current market conditions for the Xerox corp by addressing the price elasticity of demand for the company.
Macroeconomics, explain why changes could occur in supply, demand, and price. Note: A change in demand (or supply) is not the same concept as a change in quantity demanded (or change in quantity supplied).
- using elasticity to find new pricing in the units is difficult - the original formulas are not correct or missing something - all info included All work done with what was given
Question 1 (1 point) Why does asymmetric information limit contracts from solving incentive conflicts? a. Because of unequal information, it is difficult and costly for parties to ascertain whether or not other parties to the agreement have honored the terms of the contract. b. All parties share in the same i
1. What is a demand for a productive resource, which is derived from the demand for the goods and services produced from that resource. 2. The elasticity of demand for labor depends on ? 3. List the key factors that have changed the supply of labor and that over the years have increased it. 4. Wages and employment have
Question 2: Firm Costs and Response to Input Price Changes Suppose a firm faces a constant returns to scale Cobb-Douglas production of the form: 2.1 Derive the total cost function for the firm, and calculate the total cost of producing 10,000 units of the output. 2.2 Calculate the elasticity of total cost with resp