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1 page Details: Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 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

Implicit Assumptions

In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from .50 cents to .75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea

Elasticity and Market Structure

Please refer attached file for graphs. 1. Compute the approximate elasticity of demand from the following data: Initial Situation:Price: $23 Quantity: 11.5 New Situation: Price: $20 Quantity: 13.5 a. .87 b. 1.15 c. 1.5 d. 5.0 2. Refer to the graph. If market price increases

Multiple Choice Review Questions

See attached file for full assignment. 1. in the late 1990's mad cow disease caused people to buy less beef. It also caused the eu to ban imported bristish beef and the bristish government to ban the sale of older cattle. What is the effect of the following on price and quantity of British beef sold worldwide? 2. A quant


As the research starts to come in about your expansion opportunities abroad, the marketing department has discovered that the price elasticity for CPI'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


7. The total operating revenue 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 estimated to be -0.4. By law, the public transportation authority must take steps to eliminate its op

Managerial Economics

From Table below, determine by how much the demand for Florida Indian River oranges would change as a result of a 10 percent increase in the price of Florida interior oranges, and vice versa Type of Orange Florida Indian River Florida Interior Florida Indian River -3.07

point elasticity of demand

Three Peaks Ski resort has estimate the following demand curve for their lift ticket Q=7000-160P+40A Where Q= weekly number of lift tickets, P=price pf lift ticket, A=number of newspaper ads week Question: A. The Three Peaks charges $25 per ticket and has 5 advertisement notices in the local newspapers. How many lift

State clear the formula applied in order to calculate the elasticity.

Suppose the price of apples rises from $3 to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of 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 show

Please help with this estimate

Given the estimated demand function is: Qd = 36315-9937 *price-0.09 * income+0.02 * customers + 2918* price of natural gas Estimate the (own) price elasticity (of demand). Assume the following: own price is $3, income is $60,000, the market has 2,000,000 potential customers and the price of natural gas is $4. (The following

Demand Function

A radio station that goes by the name KRDY-FM is contemplating a T shirt advertising promotion. Monthly sales data from T shirt shops marketing the "Listen to KRDY-FM" design indicate that the demand curve for the T-shirts can be described as: Q = 3,000 - 500P Where: Q is T shirt sales and P is price. a.How many T-shir

Elasticity and Cost Concepts

1. You've been hired by an unprofitable firm to determine whether it should shut down its unprofitable operation. The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage (per worker) is $80, and the price of the firm's output is $25. The cost of other variable inputs is $400,000 per day.

Calculate price elasticity and explain step by step please

Suppose the demand function is Q=100-P, where Q is the quantity demand and P is the price. Please calculate the price elasticity at P=10 (by comparing it with a pair of price and quantity at P=20). Calculate the change in total revenue which is P times Q moving from P=10 to P=20. Repeat the same exercise for P=70 versus P=80.

Elasticity and Revenue: California and Massachusetts Vanity Plates

A study found that in California, where car vanity license plates cost $28.75, the elasticity of demand was 0.52. In Massachusetts, where vanity plates cost $50, the elasticity of demand was 3.52. Assuming vanity plates have zero production cost, was each state collecting the maximum revenue it could from vanity plates? What rec

Profit maximization

A New Hampshire resort offers year round activities in winter, skiing and other cold weather activities; and in summer, golf, tennis, and hiking. The resort's operating costs are essentially the same in winter and summer. Management charges higher nightly rates in winter, when its average occupancy rate is 75%, than in the summe

Economic Demand analysis and estimation

A direct relation exists between the price of one product and the demand for: a. complements. b. substitutes. c. normal goods. d. inferior goods. PROBLEM (show all your calculations) Demand Analysis. The South Park DVD (season three) has been a slow seller during recent months. An analysis of monthly demand shows:

Price elasticity

Describe how the necessity of a good and the availability of substitutions impact price elasticity.

Elasticity and marginal revenue help

Here is some data on teh demand for marshmallows price quantity $10 1100 8 1300 6 1700 4 2300 2 3100 is demand elastic or inelastic in the $ 6 - 8 price range? how do you k now? if hte table represents the

Supply and demand

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 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 t

Health insurance and demand for health

Why is the depreciation of capital good a cost of society? In what ways does a person's health depreciate? Why might older people's health care expenditures increase in the Grossman model even though their desired health stocks may be lower? List at least three factors that might increase an individual's marginal efficiency of i

Elasticity of demand

A company has the following demand function for its product. Q=40,000-200P+500I+100Px Where P is the price of the firm's product, I is household disposable income in thousands of $, and Px is the price of a competitor's product. The firm charges a price of $ 100 per unit. Estimated household income = $ 50. (in thousan

Economics help

1. What does the coefficient on the income variable in the study of the " Determinants of the Demand for Chess" indicate? a. Demand for chess is price elastic b. Demand for chess is price inelastic c. Demand for chess is greater among low income individuals d. Demand for chess is impossib

Cross price elasticity

The South Beach Cafe recently reduced appetizer prices from $12 to $10 for afternoon "early bird" customers and enjoyed a resulting increase in sales from 90 to 150 orders per day. Beverage sales also increased from 300 to 600 units per day. A. Calculate the arc price elasticity of demand for appetizers. B. Calculate th

Supply/demand analysis and elasticity of demand

What kinds of changes in underlying conditions can cause the supply and demand curves to shift? Give examples and explain the direction in which the curves shift. What is price elasticity? Give examples of five products whose demand is price elastic, and five products whose demand is price inelastic and elaborate on the choic

Market Trend

Explain your conclusions. In your paper address how each of the following will change or will not change, and why: Ford Motors Company How will Ford Motors Productivity change, (consider the law of diminishing marginal productivity) How will Ford Motors Price elasticity of demand change. All I need is 125 to 150 words

Difference in inelastic and elastic

Different products have different elasticities. Heart medication, for example, is inelastic and corn is elastic. Find a product that has not already been selected and describe the price elasticity and income elasticity. How much control might an organization have over pricing based on a product's elasticity? Discuss which of the

Demand Elasticity

1. Xerox Corporation develops, manufacturers, and services document equipment and software solutions worldwide. Assume the company offered $75 off the $1,475 regular price on the Phaser 6360, a durable high-speed color copier, and Internet sales jumped from 700 units to 800 units per week. A. Estimate the color copier demand