The price elasticity of demand for imported whiskey is estimated to be -0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign whiskey, causing its price to rise by 20 percent. Will sales of whiskey rise or fall, and by what percentage?
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?
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
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
Suppose you are a painter, and the price of a gallon of paint increased from $3.00 a gallon to $3.50 a gallon. Your usage of paint drop from 35 gallons to 20 gallons a month. 1. Compute the price elasticity for paint and show calculations. Decide whether the demand for paint is elastic, unitary elastic, or inelastic.
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
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)
The following is a straight-line demand curve: Price Quantity Demanded $12 1 10 2 8 3 6 4 4 5 a) Calculate the elasticity of demand in going
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
Elasticity, Demand, and Total Revenue Demand Schedule for Barbeque Dinners... A. Calculate the total revenue for each level of demand. B. Using the midpoints formula presented in the text, calculate the elasticity coefficient for each price level, starting with the coefficient for the $4 to $6 level. For each coefficient, i
A monopolist sells in both Milwaukee and Cleveland and has identical marginal costs of 8 in each market. If the elasticity of demand in Milwaukee is -5 and in Cleveland is -2 what are the profit-maximizing prices in each market? If the product can be easily shipped from one city to the other at a cost of 2 per unit, would this c
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 __________ __________ __________
As an economist, you have been asked to write a letter to a meeting of international professionals to explain the differences between microeconomics and macroeconomics and to provide real-world examples. Please write a letter of 4-6 pages including, but not limited to the following: - the main differences between microecono
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
The British Automobile Company is introducing a brand new model called the "London Special." Using the latest forecasting techniques, BAC economists have developed the following demand function for the "London Special": Qd = 1,200,000 - 40P What is the point price elasticity of demand at prices of: a. $8000 b. $10,000
What is the difference in the price elasticity of demand for an individual firm in a perfectly competitive industry as compared with a monopolist. Why are the price elasticity different?
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
Describe the price elasticity of demand for a resource. Why is it important and what is it used for?
Given the same price elasticity of supply, sellers would be able to pass along the smalles portion of a 10%tax on which item? Beef with a price elasticity of demand of .62 Pork with a price elasticity of demand of .73 Chicken with a price elasticity of demand of .32 Fish with a price elasticity of demand of .12
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
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.
Demand function for product: Qd = 500 - 2P + 3Pr + 0.1N, where P is price, Pr is price of related good, and N is per capita disposable income. Assume P = $10, Pr = $20, and N = $6,000. A. Income elasticity of demand at N = $6,000? (Show Work) B. Cross elasticity of demand given Pr = $20? (Show Work)
Demand curve product X is given as Q= 2000 - 20P. a. how many units will be sold at price $ 10 B. at what price would 2000 units be sold? o units? 1500?. c. write equations for total revenue and marginal revenue (interm of Q). d. what will be the total revenue at price of $ 70? what will be marginal revenue? e. what is
The ABC company manufacture AM/FM clock radios and sell an average 3000 units monthly at $25 each for retail store. it closest competitor produce a similar type of radio that sell for $ 28. a. If the demand for ABC product has an elasticity coefficient of -3, how many it will sell per month if the price is lowered to 22?
Price Discrimination for The Fun Land Amusement Park: See attachment for information and equations. a) Assuming the company can discriminate in pricing between locals and tourist customers through coupons distributed to locals via local shops, calculate the profit maximizing price, output, and total profit contribution lev
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