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Elasticity

Price Elasticity of Demand and Inverse Demand Function

4. Given the following cost and inverse demand function P(Q) = 50 - .00025Q C(Q) = 361, 250 + 5Q + .0002Q² a. Find the total revenue? b. Find the marginal and average costs and graph the functions in the ranges of Q= 40,000, 42500, 45,000. c. Briefly explain the point of intersection between MC and ATC (AC) in terms

Arc Elasticity, Demand Curve, Total Revenue

The Jaimison Company produces steel. Its demand curve is linear. Its current price and quantity are $237.50 and 1,050 tons, respectively. Management determines that if they lower the price to $200, the will sell 1,200 tons of steel. a. Calculate the arc price elasticity between these two points on the demand curve. b.

Demand and supply, Elasticities and Support Price

1. A product's Demand Curve is : Qd = 50 - 2P, and Supply Curve is Qs= 40 + P. a. When P=$10, what is the difference, if any, between Qd and Qs? b. When P=$2, what is the difference , if any, between Qd and Qs? c. What are the equilibrium values of P and Q? 2. The demand curve is: Qd = 500 - 1/2P.

Demand Analysis & Estimation

I. Rank the following (please provide a brief explanation as well) from the most to least elastic. 1. beef 2. salt 3. European vacation 4. steak 5. Honda Accord 6. Dijon mustard II. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston: Price Qt

Microeconomics concepts: surplus or shortage?

7. What entity establishes a price ceiling and does it require government sanction for violators? Will it result in a surplus or a shortage? 8. If a producer overproduces and sets the price of his product too high to allow him to sell all of his production, does this cause a surplus or an excess supply condition? 9. Wha

Household Behavior and Consumer Choice

1. Using the midpoint formula, calculate elasticity for each of the following changes in demand by a household. P1 P2 Q1 Q2 Demand for: Long-distance telephone service 0.25 per min 0.15 per min 300min per mo. 400 min per mo. Orange juice 1.49 per qt. 1.89 per qt 14 at per mo. 12

Process balance of payments deficit correction

How do (a) the elasticities approach, (b) the absorption approach, and (c) the monetary approach, explain the process by which a balance of payments deficit is corrected under a flexible exchange rate system?

Elasticity of demand

I hope you can help me with this: Question 1 P 0 1 2 3 4 5 6 Qd 600 500 400 300 200 100 0 A. Graph the data above b. Calculate the elasticity of demand, using the point formula, as price drops from $6 to 5, then from 5 to 4, 4 to 3, 3 to 2, 2 to 1, and, 1 to 0. Show all work. C. Calculate the price elasticity

Pricing with marketing power

I am having trouble with the project materials on this particular project. I am uncertain to what they are asking in reference to the pricing scenarios using the market power.

Price Elasticity Home Building

Need to find an articles about price elasticity in the home building industry? What is the price elasticity? Is it elastic or inelastic?

Pricing with Market Power

Please help me so I can complete the assignment: Prepare a 400- to 700-word report that describes the profit-maximizing prices Aveta Labs should charge for Taziclor in Europe and the United States. Include the following in your report: Identify the prices that maximize profits in Europe and the United States. Explain w

If the price elasticity of demand for cable TV connections is high and the price elasticity of demand for movies shown in theatres is less than 1, what strategy would you expect cable TV firms to follow in arranging for initial connection?

Please see attached and explain with clear reasoning and use diagrams where appropriate. Thank you. Question 1: a) If the price elasticity of demand for cable TV connections is high (for example greater than1.5) and the price elasticity of demand for movies shown in theatres is less than 1, what strategy would you expect ca

Automotive Industry Research

Please help me with the following: Write a paper that provides an economic profile of the automotive manufacturing industry. Discuss how the following impacts this industry. 1. Shifts and price elasticity of supply and demand. 2. Positive and negative externalities. 3. Wage inequality. 4. Monetary and fiscal policies.

Show the effect on the demand curve

For each of the following changes, show the effect on the demand curve, and state what will happen to the market equilibrium price and quantity in the short run: a. The price of substitute good rises. b. Consumer incomes fall, and the good is normal. c. Consumer incomes fall, and the good is inferior. If a product's dem

Demand

Please help with Nos, 1,3, 4, 7, 8 and 10 on pages P9 and P10 of chapter 5. Please use MS Excel software for problem 10.

Economic questions

Are these true or false? 1. Marginal cost is the additional cost incurred in undertaking an activity? 2. The "invisible hand" is the price mechanism that guides our actions in the market. 3. When individuals trade, using their comparative advantages, the production possibility curve does not change

Utility and Supply and Demand Elasticity

The exercises are about UTILITY and SUPPLY & DEMAND ELASTICITY. 1.What does a demand for enrollment in a specific college look like? What is on the axes? Is the demand price-elastic? Income-elastic? How could you find out? 3. How does total and marginal utility change as you spend more time surfing the Net? 4. If the price

Cross Elasticities

Always round tire finds the following cross elasticities: A. Demand for tires / price of batteries = .45 B. Demand for tires / price of brake jobs = -0.70 C. Demand for tires / pric of an oil change = 0.002 Discuss implications for pricing of batteries, brakes and oil changes on the sale of tires. Any help in underst

In the competitve market for a certain spice, the supply function is Qs=4P

1. IN THE COMPETITVE MARKETFOR A CERTAIN SPICE, THE SUPPLY FUNCTION IS Qs =4P AND THE DEMAND FUNCTIOIN IS QD =300 -2P. "P" IS MEASURED IN POUND S PER DAY. (THE INVERSE SUPPLY AN DDEMAND FUNCTIONS ARE P =(1/4) QS AND P = 150 -0.5QD, RESPECTIVELY PART1. ARE THE LAWS OF DEMAND AN SSUPPLY SATISDFIED, IN THIS CASE? EXPLAIN PART2 SKET

Consider a monopolist who owns a natural spring

1) Consider a monopolist who owns a natural spring that produces water that, according to nearby residents, has a unique taste and healing properties. The monopolist has fixed cost of installing plumbing to tap the water but no marginal cost. The demand curve for the spring water is linear. Depict graphically the monopolist choi

Academic approach to Elasticity

18. The owner of a produce store found that when the price of a head of lettuce was raised from 50 cents to $1, the quantity sold per hour fell from 18 to 8. The arc elasticity of demand for lettuce is: a. -0.56. b. -1.15. c. -0.8. d. -1.57.

Your firm has identified two distinct groups of consumers for its product

Your firm has identified two distinct groups of consumers for its product - each which consist of 50% of the market. Your market research suggests that group A has a price elasticity of demand of 4. Group B has a price elasticity of demand of 2. Assume that your marginal cost of producing your product is $10. (1) If you

Elasticity of Natural Gas

1. Using the elasticity concept explain why the demand for residential natural gas (gas used for heating, cooling, and cooking) is more elastic than the demand for residential electricity. 2. What were some changes of the demand and supply fconditions that lead to the housing market bubble and collapse?

Summarize an article that implies an assumption about price elasticity of demand

Summarize an article that implies an assumption about price elasticity of demand or supply or that implies an assumption about income elasticity. The article can come from an online newspaper or magazine. A link to the article must be included with your summary remarks. Summarize what the article is about in general, followed by

Inelastic, Elastic and Unitary Price Elasticity Differences Explained

The marketing department has discovered that the price elasticity for your company's products in Brazil is expected to be much greater than in current markets served. Separately, your CFO sent you an e-mail earlier in the week stating that depending on how much business your company does abroad, the firm would expose 5 to 20 per