Please don’t answer subpart A. Subparts D, E, F correspond to question 3 in the 1st photo 3. Given the demand function of good 1: Q1Q1: the demand for good 1P1: the price for good 1P2: the price of good 2Answer the following questions= 300 10P1 + 0.5P2a. What is the inverse demand function of good 1?b. Derive the expression of total revenue in terms of quantity of good 1(Q1) and price oates) E v E v E E E三回三=|加vAaBbCcDdEeAaBbCcDdEeNormalBody Textd. If P2=2, what's the optimal quantity to produce for good 1? What's the correspondingprice to charge?e. If P1=3 and P2=2, what's the own price elasticity of good 1? Write out the formula,calculate and interpret.f. Are good 1 and good 2 complements or substitutes? Why?d States)רétv

Q = 300 - 10P1+0.5P2 10P1 = 300 + 0.5P2-Q P1 = 30 + 0.05P2 - 0.1Q

3. Given the demand function of good 1: Q1 = 300 Q1: the demand for good 1 P1: the price for good 1 P2: the price of good 2 Answer the following questions – 10P1 + 0.5P2 %3D a. What is the inverse demand function of good 1?

3. Given the demand function of good 1: Q1 = 300 Q1: the demand for good 1 P1: the price for good 1 P2: the price of good 2 Answer the following questions – 10P1 + 0.5P2 %3D a. What is the inverse demand function of good 1?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 13E: Using the following equation for the demand for a good or service, calculate the price elasticity of...

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Using the following equation for the demand for a good or service, calculate the price elasticity of demand (using the point form), cross-price elasticity with good x and income elasticity. Q=82P+0.10I+Px Q is quantity demanded, P is the product price. P1 is the price of a related good, and I is income. Assume that P= $10, I = 100, and Px = 20.
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?
Suppose Sally buys exactly five bars of English toffee each week, regardless of whether the toffee bars are regularly priced at 1 or on sale for 0.50. Based on this information, what is Sallys price elasticity of demand for English toffee in this price range? a. 0 b. 1 c. Infinity d. Cannot be determined.
Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from 8 to 10 if (i) your income is 20,000 and (ii) your income is 24,000. b. Calculate your income elasticity of demand as your income increases from 20,000 to 24,000 if (i) the price is 12 and (ii) the price is 16.
c. What is a “complementary good”? Give an example. Does it have a positive or negative cross-elasticity of demand? Assume that the price cross elasticity of demand for muffins with respect to the price of coffee is (negative) - 0.7.
4. The demand function of certain good is given by: P = (50 + Y) e 0.1Q, where Y denotes the income level. %3D a) If P = 20 andY = 50, calculate the quantity demanded. b) Is the good inferior or superior? c) If Y = 50, calculate the value of Q for which demand is unit elastic.
14. If the inverse demand curve for a good is given by P=100-4Q, the price elasticity of demand is elastic at a price of and inelastic at a price of A) $40; $60 B) $60; $50 C) $55; $35 D) $35; $30
Q2) The accompanying table lists the cross-price elasticities of demand for several goods, where the percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good. a. Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question? b. Compare the absolute values of the cross-price elasticities and explain their magnitudes. For example, why is the cross-price elasticity of McDonald’s burgers and Burger King burgers less than the cross-price elasticity of butter and margarine? c. Use the information in the table to calculate how a 10% increase in the price of Pepsi affects the quantity of Coke demanded. d. Use the information in the table to calculate how a 5% decrease in the price of gasoline affects the quantity of SUVs demanded.
usiness EconomicsQ&A Library) If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 12. Find the slope of the demand curve. a) 0.2 b) 5 c) -1 d) -2 Other: 8) Based on Question 7, calculate the quantity when the price is equal to 0 a) 13 b) 2 c) 10 d) 5 9) Based on Question 7, if the market price is equal to 1, determine how many units of good X will be sold in the market. a) cannot be determined b) 12 c) 10 d) 14 Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: (7) - wrong data. "quantity demanded drops from 10 to 12" is wrong since value from 10 to 12 is an increase, not a drop. Ask Your Question Again 6 of 10 questions left until 1/15/21 Question I. If the price of good X increases from RM3 to RM5, the quantity demanded drops from 10 to 12. Find the slope of the demand curve. a) 0.2 b) 5 c)…
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13. If a change of 15% in price of good X, results in a change in demand for good Y of 5%,then:(a) The cross-price elasticity of demand is 1/3 and the goods are substitutes(b) The cross-price elasticity of demand is 3 and the goods are substitutes(c) The cross-price elasticity of demand is 1/3 and the goods are complements(d) The cross-price elasticity of demand is 3 and the goods are complements(e) None of the above is true