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Short answer type questions

1. If a 1% fall in the price of a product cause the quantity demanded of the product to increase by 2%, demand is (a) inelastic (b)elastic (C) unit elastic (D) perfectly elastic 2.The minimum acceptable price for a product that Juan is willing to receive is $20. It is $15 for Carlos. The actual price they receive is $2

The average change in fares

1. Read the attached New York Times article â??With Fare Up, Subway Use Drops Sharply.â? a. Use the data in the article to estimate the price elasticity of demand for subway rides (use the midpoint method). b. According to your estimate, what happens to the Transit Authorityâ??s revenue when the fare rises? c. Do you t

Arc elasticity

Instead of going to work one morning, Ellen decides to go to the doctor for a 10-minute office visit. It will take her 15 minutes to travel each way, 20 minutes to wait in the office, and 10 minutes with the doctor. The money cost of the visit is $25. Her hourly wage is $10. travel (gas) and parking is $5. Show your work on

Microeconomics statistical significance

Use the following to answer a-e. Please show all work in as much detail as possible. Assume Q is the quantity demanded for medical care services. The linear industry demand function takes the form Q = a +bp +cM +dPr where: P = the price of the medical care M = median household income Pr = the price of a related good

Elasticity and tax revenues

Why is it wiser for the government to put a sales tax on a good that is demand inelastic than on one that is demand elastic?

Elasticity of demand

Q. The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50% of that cost. Under the plan, the clients covered used 625 hours of this service in a typical 3 month period. To save money, the extended health plan reduced its coverage to 40% of the cost. As a result, the clients covered red


Suppose that during a given year: (1) the price of TV sets increases by 4 percent in Japan, (2) the dollar depreciates by 5 percent with respect to the yen (the Japanese currency), (3) consumer incomes in the United States increase by 3 percent, (4) the price elasticity of demand for imported TV sets in the United States is -1.5

Economic problem need to be done if possible the book Macroeconomic for MBA

1. If the price of jeans rises and the quantity sold also rises, does this mean that the demand curve slopes upward? Why or why not? 2. If the prices of most goods are rising by an average of 15 percent per year, but the price of gasoline rises just 10 percent per year, what is happening to the real prices of gasoline and how


Given each of the following price elasticities, determine whether marginal revenue is positive, negative, or zero. -5, -1, -0.5

Homework assistance

1.Calculate the price elasticity of demand when the price of milk increases from $2.25 to $2.50 per gallon and the quantity of milk demanded falls from 100 to 90 gallons. Use the method for calculating price elasticity found in your text. Do NOT include any symbols other than a negative sign or decimal point in your answer. If

Nature of Demand Curves

Just 1 or 2 sentence needed to answer the following question Explain why the demand curve facing a monopolist is less elastic than one facing a firm that operates in a monopolistically competitive market. ( all other factors held constant)

Estimated Elasticity of Demand for Cigarettes

College students -0.906 to -1.309 Secondary school students -0.846 to -1.450 Adults, long-run, permanent change in price -0.75 Adults, short-run, permanent change in price -0.40 Adults, temporary change in price -0.30 Based on the data above, discuss why public health officials generally advocate the us

Macroeconomics: Elasticity, Demand, and Total Revenue

Prepare an analysis by answering the questions below. Be sure to cite your references using APA format. Demand Schedule for Barbeque Dinners Price Quantity Demanded Total Revenue Elasticity Coefficient Elastic or Inelastic $4 100 __________ XXXX XXXX 6 80 __________ __________ __________

Sales Projections & Elasticity

The Future Flight Corporation manufactures a variety of frisbees selling for $2.98 each. Sales have averaged 10,000 units per month during the last year. Recently Future Flight's closest competitor, Soaring Free Company, cut its prices on similar frisbees from $3.49 to $2.59. Future Flight noticed that its sales declined to 8,00


A baseball team is trying to predict ticket sales for the upcoming season. They are also considering increasing prices. aâ?"the elasticity of ticket sales with respect to the size of the population is estimated to about 0.7. iâ?"briefly explain what this number means? iiâ?"If the local population increases from 60

Business case type

You are the owner of a local Saturn dealership that competes against two other firms (Ford and Chrysler dealerships) Unlike other dealerships in the area, you take pride in your â??No Hassles, No Haggleâ? sales policy. Last year, your dealership earned record profits of $1.5 million. However, according to the local Chamber


FIRST QUESTION Assuming the price elasticity of a companyâ??s product is between -0.3 and -0.4 and the income elasticity of demand is 0.5: 1. Determine the effects a 15% price increase would have on the demand for the product 2. Determine the effect a 50% increase in income would have on the demand for the product SECOND

Demand, Elasticity, and Total Revenue: Rib Shack Example

1. Explain how Demand, Elasticity, and Total Revenue are all related to each other. Explain this relationship using at least two examples that incorporates all three concepts. Use examples and references from texts, Web sites, and other references or from personal experience, in answering this question. 2. Trade restrictions

Use Arc formula elasticity of demand.

ABC, Inc sells it toys for $15 with a sales volume of 30,000 units per quarter. Assume the price elasticity coefficient is -0.5 and ABC, Inc raises the price to $16 in anticipation of the Christmas season. Estimated 4th quarter sales volume will be? Use Are formula elasticity of demand.

Markup Pricing

Mary Richards is a pricing manager of Caring Move, Inc., a local visiting nurse firm in the home care market. Richards has been asked to complete an analysis of profit margins for the firm. Unfortunately, her predecessor on this project was abruptly terminated, leaving only sketchy information on existing pricing practices. A

Calculating the price elasticity of supply

Suppose the supply for good x is estimated by the following equation: Q(x) supplied = 4 + 0.8P(x) - 0.2P(x)expcted - 0.4W Where; Q(x) supplied = quantity supplied of x P(x) = current average good of x P(x) expected = expected price of good x W = average wage rate Suppose; P(x) = $5 P(x) expected = $6 W = $4.5

Price Elasticity

Explain the factors that contribute to the elasticity of goods: 1-discuss in detail the influences of price elasticity of demand 2-explain the factors that contribute to the elasticity of goods 3-discuss how these factors influence consumers to purchases goods or services 4-explain how price elasticity of demand relates to m

McGuigan Economics

1. Assume that the demand for bottled water is price inelastic. Are the following statements true or false? Explain. a. When the price of bottled water decreases, the quantity sold increases. b. The percentage change in the price of bottled water is less than the percentage change in quantity demanded. c. Changes in the price

Microeconomics Demand Exercise

1. Using data covering May 1998 to October 2000 a student attempted to estimate the demand for meals at a local restaurant. The data included the average price per meal (p), the number of customers (q), and advertising expenditures (a). The following model in levels and logs was estimated: Q = b0 + b1p + b2a + b3s + b4T Th

Marginal Cost: Find the price at which the firm sells the product.

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product. (Use equation (3012) and to maximize the profits, MR has to equal MC. Please show all work and explain answer

Pricing Policy: Total Operating Revenue

The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -0.4. By law, the public transportation authority must take steps to eliminate its o

Elasticity: Demand and Supply

1. Determine the price elasticity of demand at each quantity demanded using the formula: Percentage change in quantity demanded = (Q2-Q1)/Q1 divided by percentage change in price = (P2-P1)/P1 b. Redo exercise 1a using price changes of $10 rather than $5 c. Plot the price and quantity date given in the demand schedule. Indi


Question 1 Refer to the graphs. In which graph is there no consumer surplus either with or without a per unit tax? A. B. C. D. Question 2 If the supply curve is perfectly elastic the burden of a tax on suppliers is borne: entirely by the suppliers. enti


Question 1 Compute the approximate elasticity of demand from the following data: Answer .87 1.15 1.5 5.0. Question 2 Refer to the graph. Between points A and B, demand is: Answer inelastic. elastic. unit elastic. perfectly elastic.


1. A. Current gas is $1.50 a gallon, avg household income is $100,000 a yr. The quantity demanded is 200 million gallons of gas a week. If gas were to increase to $1.68 a gallon the quantity demanded would fall to 158.7 million gallons a week. If household income increased to $110,500 a yr , the quantity demanded would rise to 2