1. In the United States, 2013 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded. a. Using the midpoint method, calculate the price elasticity of demand for winter wheat. b. What is the total revenue for U.S. wheat farmers in 2012 and 2013? 2012 2013 Quantity demanded (billions of bushels) 2.2 Average price (per bushel) 2.0 $3.42 $4.26 c. Did the bad harvest increase or decrease the total revenue of U.S. wheat farmers? How could have predicted this from your answer to part a? you

1. In the United States, 2013 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded (a movement along the demand curve). The accompanying table describes what happened to prices and the quantity of wheat demanded. a. Using the midpoint method, calculate the price elasticity of demand for winter wheat. b. What is the total revenue for U.S. wheat farmers in 2012 and 2013? 2012 2013 Quantity demanded (billions of bushels) 2.2 Average price (per bushel) 2.0 $3.42 $4.26 c. Did the bad harvest increase or decrease the total revenue of U.S. wheat farmers? How could have predicted this from your answer to part a? you

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The schedule below shows the quantities of shoes demanded at each income level in a community from 2020 to 2021: Year Income (R) Quantity (units) 2020 5 000 1 000 2021 6 500 900 3.1 Calculate the income elasticity of demand, using the arc method and interpret your result. 3.2 List any four factors that could result in the shoes having inelastic price elasticity of demand. 3.3 Explain the importance of understanding the relationship between price elasticity of demand and total revenue.
Price Elasticity of Demand (Study Plan 4.1) 1. Rain spoils the strawberry crop, the price rises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week. a. Calculate the price elasticity of demand over this price range. b. Describe the demand for strawberries. If the quantity of dental services demanded increases by 10 percent when the price of dental services falls by 10 percent, is the demand for dental services inelastic, elastic, or unit elastic? The demand schedule for hotel rooms is Price (dollars per room. per night) 200 250 400 500 800 Quantity demanded (millions of rooms per night) 100 80 50 40 25 a. What happens to total revenue when the price falls from $400 to $250 a room per night and from $250 to $200 a room per night? b. Is the demand for hotel rooms elastic, inelastic, or unit elastic?
Use the graph to answer the question that follows. What is the price elasticity of demand when price increases from $2 to $4? A-0.2 B-0.5 C-2 D-3 E-5
Figure 5-2 B Refer to the figure. What happens to total revenue if price falls along part C of the demand curve?? Total revenue rises because demand is elastic Total revenue falls because demand is inelastic Total revenue falls because demand is elastic Total revenue does not change because demand is unit elastic
3) Coca-Cola: Suppose that Pepsi decreases the price of its six-packs from $3.00 to $2.50. How would this news change the demand for six-packs of Coca-Cola? a. First, graph the situation with price of Coca-Cola and quantity of Coca-Cola. Use BLACK for supply, BLUE for demand. Label supply as Sı and demand as Dj and D2. b. Using your knowledge of the laws of supply and demand, explain the shift(s) that have been made in your graph and describe what happened to the equilibrium price and quantity (3-4 bullet points), Make sure to include the 8 determinants of demand or 5 determinants of supply. Label the equilibrium points CLEARLY! c. Add a picture of Coca-Cola vs. Pepsi.
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23. Using the production possibilities table below, please answer the following question: Type of Production Schools Missiles Type of Production Schools Missiles A 0 16 A 0 16 Production Alternatives If the economy were at point D, what would be the opportunity cost of building 4 more schools? 24. Using the production possibilities table below, please answer the following question: B 4 15 B 4 15 Production Alternatives C 8 12 с 8 12 D 12 7 E 16 0 D 12 7 If the economy were at point D, what would be the opportunity cost of building one more missile? Please show your calculation for full points. E 16 0
2. For each of the following, explain whether there is a shift in market demand or a movement along the market demand curve for Brussel Sprouts and in which direction: а. Consumers' incomes increase b. The price of Cauliflower increases c. Consumers of Brussel Sprouts expect the price to decrease next month
Please answer C and D:
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