1) When the Price is $4 the quantity supplied of hats is 100. If the price changes to $6 dollars and the quantity supplied changes to 400, is the elasticity of supply elastic, inelastic or unit elastic? How did you reach that conclusion?

1) When the Price is $4 the quantity supplied of hats is 100. If the price changes to $6 dollars and the quantity supplied changes to 400, is the elasticity of supply elastic, inelastic or unit elastic? How did you reach that conclusion?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 2 The following information reveals the market condition of fruit juice: Price ($) Quantity demanded (No. of bottles) 50 1000 80 880 110 500 Use midpoint method to calculate the price elasticity of demand of fruit juice between $80 and $110. Show your workings and round your answer to 2 decimal places. Based on your answer, is this an elastic, inelastic or unit elastic demand? Explain.
If an increase in price of a for bag Results from 90 to 120 an increase in quantity supplied of bag increased from 2400 to 2800 find the elasticity of supply?
Explain the Philip Wright theory on the elasticity of demand? As we Know he was more interested in commodity like Butter. But how this Theory will Applicable to the Commodity Like "Cigarettes"?
Explain what is price elasticity of demand and supply, provide an example
a)When John can sell totem poles for 1,800 each, he markets 60 annually. when the price falls to $600 each, he is willing to sell only 24 each year. What is his price elasticity of supply ? b) government pays attention to the elasticity of demand when selecting foods and services upon which to levy excise taxes. Assume a $1.00 tax is levied on some good and 10,000 units are sold. What is the tax revenue collected ?
Marty McFly enjoys going to the local farmers market. When the price of apples are $1.00 each, he purchases 10. When the price of apples increases to $1.50, he only purchases 6. What is the price elasticity of Marty’s demand curve? Is it elastic or inelastic?
Ghose and Han (2014) found that the elasticity of demand for Google Play apps is -3.7. (See the mini-case "Demand Elasticities for Google Play and Apple Apps.") This elasticity applies to a small college town where consumers buy approximately 1000 apps per month. If price rises by 5%, what would the effect on quantity demanded? Would revenue rise or fall?
f the price of a haircut is $10, the number of haircuts provided is 200. If the price rises to $15 per haircut, barbers will work much longer hours, and the supply of haircuts will increase to 250. Instructions: Round your answer to two decimal places. The price elasticity of supply for haircuts between $10 and $15 using the mid-point method is.
Jim saw a decrease in the quantity demanded for his firm’s product from 8000 to 4000 units a week when he raised the price of the product from $200 to $250. What is Jim’s own price elasticity of demand?
When the price of a good is $6, the quantity demanded is 50 units per month; when the price is $8, the quantity demanded is 30 units per month. Find the arc price elasticity of demand for this good and comment on it.
Based on the schedule given calculate the price elasticity of demand (using the midpoint method) when the price of pencil rises from $4.50 to $5.50, when average income is $20,000. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400 Your answer
Macmillan Learning Calculate the price elasticity of supply for Belinda's Bakery's banana bread. When the price changes by 24%, the quantity supplied changes by 55%. Round your answer to two decimal places.