6) The elasticity of supply for a given good is 0.8; if the percentage increase in the price of said well it is 25$, the quantity supplied of the same: (explain) a) Will increase by 25$ b) It will decrease by 17$ c) Will increase by 20$ d) It will decrease by 25$

6) The elasticity of supply for a given good is 0.8; if the percentage increase in the price of said well it is 25$, the quantity supplied of the same: (explain) a) Will increase by 25$ b) It will decrease by 17$ c) Will increase by 20$ d) It will decrease by 25$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

6) The elasticity of supply for a given good is 0.8; if the percentage
increase in the price of said well it is 25%, the quantity supplied of
the same: (explain)
a) Will increase by 25%
b) It will decrease by 17%
c) Will increase by 20%
d) It will decrease by 25%

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The following table contains a monthly demand and supply schedule for large, single- topping, carry-out pizza Pizza Price (per pack) Quantity demanded for pizza (per pack) Quantity supplied for pizza (per pack) Quantity demanded for good Y $21 6000 7900 6000 $19 7000 7200 8000 $17 8000 6500 10000 (A) Calculate the price elasticity Of demand (PED) for good X when price fall from S 19 to $ 17. (B) Suppose you are the sellers of pizza based on the value of PED obtained In your answer for Question(A), would you or would you not raise the price of pizza? Why? (C)What S the cross elasbcity of demand (CED) of Good Y when price of carry-out pizza fall from $19 to S17? How is pizza and the Good Y related?
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None
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