3. Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively for product X. Eq. 1 Eq. 2 Qdx = 65,000 – 11.25Pg + 15P, – 3.751 + 7.5A Qsx = 7,500 + 14.25Px – 15P, – 3.75C where Px - price of product X; Py – price of product Y; I – average consumer's income; A - advertising expenditure; Pz – price of product Z; and C – cost of production. Use the following additional information: the price of a related product, Y, is P41.25; the average consumer's income is P12,000; advertising expenditure is P2,500; the price of product Z is P90; and the cost of production is P1,200. There are 30 identical buyers and 50 identical sellers in the market for product X.
Q: Let us assume that two drugs X and Y are related in consumption. Are they substitutes or complementa...
A: Given that drug X and drug Y are related in consumption then,
Q: Profits are O Residual payment
A: To find : What is profit.
Q: Using the market demand function, what is Px that will make all the buyers stop purchasing this prod...
A: Given Individual demand function: Qdx=65000-11.25Px+15PY-3.75I+7.5A Price of product Y is PY=41.25A...
Q: 11. Given the following information, what is Aggregate Income? Employee Compensation Gross Investmen...
A: Aggregate income refers to the total income earned by citizens and businesses of the economy in a gi...
Q: 4. Amy's utility level (U) depends on the amount of wealth (W) she possesses and it can be represent...
A: Utility function : U = 3Y0.5 Wealth in Bad state = 4,840, 000 Wealth in good State = 6,250,000
Q: Movement along the aggregate demand curve Shift of the aggregate demand curve Answer Bank a rise in ...
A: Aggregate demand refers to the macro-economic term that is used to describe the total demand for dom...
Q: Match the following situation to the best description in the pull-down menu: As the price of a good ...
A: (1) The supply curve depicts the direct relationship between the price of a good and the quantity su...
Q: Mr. Bean lends P500,000 cash to the entity. At the same time, the entity uses part of the money to r...
A: In balance sheet Assets are equal to liabilities When cash in infused in the entity, the asset s...
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $1...
A: Macroeconomics and microeconomics are important part of country mechanism. Aggregate demand and aggr...
Q: Answer if TRUE OR FALSE: • The following are economic measures which measure people's well-being in ...
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Derive the complete expression for Firm 1's residual demand given that the other firm supplies accor...
A: There are two firms in the market where market demand is Q = 100 - p and Supply function of each fi...
Q: 2.a. Based on your expected exchange rate, not using the simple rule, answer the exact foreign rate ...
A: The rate of return on a foreign deposit consists of three components: the interest rate itself, the ...
Q: Refer to Figure 10.2. Which line represents earnings? Goods Next Year 360 275 110 100 120 140 Goods ...
A: The budget line is defined as all combinations of two commodities that are affordable by the custome...
Q: Given the two machines' data Machine A Machine B First Cost P8.000.00 P14,000.00 Salvage value 2,000...
A: Given that; Machine A Machine B First Cost 8000 14000 Salvage Value 0 2000 Annual Operati...
Q: The total price of purchasing a basket of goods in the United Kingdom over four years is: year 1=£94...
A: Inflation is the rate at which prices rise over a given time period. Inflation is typically defined ...
Q: Match the following situation to the best description in the pull-down menu: Higher energy bills cau...
A: Demand curve shows an inverse relationship between price and quantity demanded while supply curve sh...
Q: An economy in which GDP and employment are rising is experiencing wh Deflation Inflation O Hyperinfl...
A: An economy in which GDP and employment are rising is experiencing what ?.
Q: An annual fixed operating cost of P10,000,000 is incurred by a Medical Devices Manufacturing Company...
A: Fixed Cost = 10,000,000 Variable Cost = 1375 Price = 4500
Q: Explain three limitations of Gross Domestic Product.
A: Gross domestic product (GDP) refers to the total market value of goods and services produced by a co...
Q: 2) A company purchased a machine for $20,000 and paid transportation cost of $5,000. At the end of 7...
A: Salvage value is the book value of an asset after all depreciation has been fully expensed. The salv...
Q: If Slovenia exports cloth, then if it increases its production of cloth due to economic growth biase...
A: The correct answer is E. High production of export goods will reduce the price of it in the world ma...
Q: Japan and the United States are major trading partners and the exchange rate between the Japanese ye...
A: Flexible exchange rate A flexible exchange rate system refers to in which the exchange rate is deter...
Q: . Which of the following transactions affects the total value of liabilities of a firm Goods purchas...
A: When talking about liabilities, theye Re considered as a burden on an individual or a firm to paybac...
Q: 2. Explain why rich countries tend to have more educated populations. --tien mattere I on ·.. ..... ...
A: People in wealthier nations are more likely to be educated.
Q: Sipho runs a local kiosk specialising in slogan t-shirts. At the end of summer, he hosts a clearanc...
A: Elasticity of demand is used to give the relative change in price due to relative change in determin...
Q: When Marginal Utility is zero, Total Utility is
A: To find : What will be total utility when marginal utilities will be zero.
Q: • The economic growth is recognized (measured) as an increase in real GDP. • Literacy rates, life ex...
A: Economic growth is described as a process in which the output of commodities and services increases ...
Q: 64. When Marginal Utility is zero, Total Utility is A. O Minimum B. O Maximum C. O Law of return D. ...
A: The satisfaction that is being derived by consumers from the consumption of service or goods is bein...
Q: The data in the following table give information about the price P (in dollars) for which a firm can...
A: Here, The value of output and cost are given for a specific firm. Revenue, marginal revenue, and pro...
Q: QUESTION 16 Af 60 per cent of the population in a country is employed and average labour productivit...
A: A) As per the information given in the question: Real GDP per person is computed as follows: Real GD...
Q: Compare the following alternatives using a method of your choice. Rate 3.5% per year compounded mont...
A: For Alternative A:- Initial cost= $2,500,000 Maintenance cost= $75,000 Benefits= $450,000 Time= 12 y...
Q: A loan of P95000 is borrowed for 240 days at a simple interest rate of 12.3 percent per year. What a...
A:
Q: B. As a result of a change in income from 1,975 to 3,875 per month, the consumption of good X change...
A: A good is a normal good when increase in income increases its demand and inferior if increase in inc...
Q: • The economic growth measures the ____. a. increase in PPP b. increase in education index c. increa...
A: Government has certain tax revenue available with them through which they have to carry out expendit...
Q: You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $1...
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: A. The price of gasoline increases from 16 per barrel to 30 per barrel and as a result, the demand p...
A: A. P1=16 P2= 30 Q1=550 Q2= 300
Q: 2. Consider the following normal-form representation of a simultaneous game. Player 2 R Player 1 T 3...
A: Players => Player 1 & 2 Strategy Set of player 1 = { T , M } Strategy Set of player 2 = { L ...
Q: Why is a slow growing economy a problem during a recession?
A: To find : Why is slow economy a problem during recession.
Q: Abbott wants to increase their marketing for Pedialyte leading up to St. Patrick's Day this year. Th...
A: Given information Ad cost=$5000000 at week 2/13/2022 Ad cost on 3/6=$800,000 Sales on 2/20=$500,00...
Q: Which of the following is NOT an input?
A: To find : Which is not input.
Q: How would you best characterize which class of value a polar bear in the Arctic might represent to m...
A: This module will cover the following topics: 1) monetary valuations of environmental goods, 2) The s...
Q: Because of international competition, a company that manufactures high-speed submersible rotary inde...
A: Given; Company can invest= $80000 After one year:- FV=-80000(F/P,i,n)+20000+20000(F/A,i,n) =-8000...
Q: Macroeconomics LESSON 6 ACTIVITY 42 (coninued) (F) In the short run, what happens to the price level...
A: The forces of aggregate demand and aggregate supply determine the macroeconomic equilibrium of an ec...
Q: What mean economic
A: Microeconomics and macroeconomics are two commonly known branches of economics. Individual economic ...
Q: In the market for candy, researchers have estimated the following demand and supply curves. Demand: ...
A: Equilibrium is attainable at such a situation where Qd=Qs. Please find the images attached below for...
Q: "he data in the following table give information about the price P (in dollars) for which a firm can...
A: MC = Total cost 2 - Total cost 1 TR = Q * PRice MR = TR2 - TR1 PRofit = TR - TC
Q: In your own words, Explain what is BJMP. Write in 200 words.
A: BJMP is known as Bureau of Jail Management and Penology which is a Department of the Interior and do...
Q: RO L(R,Y) Ms/P L1 a) Based on the graph above, discuss what would happen to the interest rate starti...
A: (Since you have a posted a question with multiple sub-parts, we will solve the first three sub-part ...
Q: a) Employ the skill circle model and calculate skill range, skill range and total labor cost per wor...
A: Workers = 240 Training cost (T) = $ 1260 / hr Wage (W) = $80 / hr
Q: Based on your understanding of Economic Value per Lead, explain which of the below mentioned channel...
A: Profit is the difference between total revenue and total cost. Total revenue is the revenue that is ...
a b c
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Use the price-demand equationp+0.001x=45, 0sps45. Find the elasticity of demand whenp%3$25. If the $25 price is decreased by 4%, what is the approximate percentage change in demand? The elasticity of demand whenp%3 25 is (Type an integer or a simplified fraction.) If the price is decreased by 4%, the demand approximately %. (Type an integer or a simplified fraction.) is increases by decreases byQ3. Refer to the diagram. Using the midpoint formula, calculate the price elasticity of demand between the prices of $15 and $12. Accordingly, state whether demand is elastic or inelastic between these two points. P$/unit 15 12 D 18 22 Q (units/week) Ep = Damand ie ... Q4. For each case below, answer the bolded questio Classification of the Case Calculations product(s) if requested to do so 1. Suppose that a 2% increase in income in the economy decreases the quantity of gadgets demanded by 1% ar every E,= Gadgets are possible price. Find the income elasticity of demand and dassify the product accordingly (state whether gadgets is a normal, necessity, luxury or an inferior product). 2. A firm finds that its price elasticity of demand is 4.0. Currently, the firm is selling 2000 units per month at $5 per unit. Price must be lowered by= If it wishes to increases its quantity sold by 10%, by how much it must lower its price? 1 Suppose legalization-and subseque nt regulation-of products Xand…Using the supply and demand equations given below: Demand Qd = 25 – 2PSupply Qs = 1 + P If the price falls from $8 to $7:a. Compute for the own price arc elasticity of demand. Provide an economic interpretationof your computed value (this is different from what is asked next) and classify the good according tothe type of elasticity. b. Compute for the price elasticity of supply. Provide an economic interpretation of yourcomputed value and classify the good according to the type of elasticity. 1. What is the relationship between total revenue and own-price elasticity of demand? 2. Illustrate a situation when the producer of a good will have a greater tax incidence than a consumer.What does elasticity have to do with tax incidence?
- Assume that the demand curve is a straight line. If the price per unit of a good rises from $4.50 to X1, it is expected that monthly demand will fall from X2 units to 250,000 units. Give your own appropriate X1 and X2. What is the point price elasticity of demand when the price is $4.50? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?Please refer to the figure below. The equation for p = 105-0.005D %3D 25,000+65D W Y D (units sold) How much is the optimum demand for the commodity if p = 105 – 0.005D? O A. 4000 О В. 4200 О С. 4300 O D. 4500 Cost/Revenue. Assume equations 1 and 2 below were estimated from the data gathered that will represent the demand and supply functions respectively of an individual buyer and seller respectively for product X. Qd, 65,000 – 11.25Px + 15Py – 3.751 + 7.5A Qsx = 7,500 + 14.25Px – 15P, – 3.75C Eq. 1 Eq. 2. where Px price of product X; Py - price of product Y; I - average consumer's income; A – advertising expenditure; Pz - price of product Z; and C - cost of production. — = If the new supply equation will be Qs'x = 26,250 + 712.50PX; 0. What would be the new equilibrium price (round-up to two decimals)? P. How many of this product will be bought and sold at this new market price? Round-up to two decimals. Q. What is the specific reason for this change in supply?
- Dashboard for Online Pricing Online the timing and tailoring of prices to specific models of products is the key to successful pricing in online markets. And “Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online.” Assuming a 10 percent decrease in price increases sales by 25 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $.50 per click and boasts a conversion rate of 5 percent (an average of 20 clicks are needed to generate a sale). What price should you charge for the product? What is the optimal markup on cost? The authors assert that price sensitivity is affected by (1) product life cycles, and (2) numbers of competitors. In fact, “when the number of competing sellers doubles, a firm’s elasticity of demand is expected to double (and you should be able to…(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?ments/497668 ignments > 25. Elasticity of Demand sticity of Demand Interpret elasticity of demand Question Suppose that the price p of a product and its demand x are related through the price-demand equation x+ 400p = 8,000. We're interested to find all the values of p such that the demand is inelastic. Which of the following gives the correct region? Select the correct answer below: O {plp 10} Previous 43% 2P PrtSc Insert Delete F6 F7 F8 F9 F10 F11 F12 F3 F4 F5 23 ) Backspac 3 4. 8 9- { + II И %24
- Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demandCreative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demandCalculate the price elasticity of demand for mobiletelephones where the quantity sold decreases from 225 to180 when the price rises from BD50 to BD57.5 3) With the help of a diagram, analyse the impact of entry ofnew suppliers into an industry on the demand and supplycurves. Make sure that your diagram is labelled clearly.