A 2% increase in the price of carrot causes its sales to decrease by 6% and sales of sweet potato to increase by 10%. The cross elasticity of demand for sweet potato with respect to change of price in carrot is____. (a) 3 (b) -3 (c) 5 (d) - 5

A 2% increase in the price of carrot causes its sales to decrease by 6% and sales of sweet potato to increase by 10%. The cross elasticity of demand for sweet potato with respect to change of price in carrot is____. (a) 3 (b) -3 (c) 5 (d) - 5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is…

A: Option A ("Only (ii) and (iv) are correct") is the correct answer.Explanation:Let's break down the…

Q: Q39) The price elasticity of demand for nursery products is -10. The advertising elasticity of…

A: The answer is - D. 4 percent

Q: Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for…

A: Price elasticity of demand shows the responsiveness of a percentage change in price to a percentage…

Q: 1. Alex finds that the demand for their lemonade is given by x = 2/p4 where p is price per cup and x…

A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…

Q: 68 The demand equation for a product is q = + In (126 - p). (a) Determine the point elasticity of…

Q: Graham decided to play football this year instead of getting a part-time job. Last year he made…

A: Hi! thanks for the question but as per the guidelines we can answer only one question at one time.…

Q: he constant price elasticity of demand for cigarettes has been estimated to be-05. To reduce smoking…

A: Introduction In order to comprehend the burden and incidence of taxes, it's vital to understand…

Q: a) What is the value of the slope of the demand curve? A: (5.5, 38.5) B: (11, 33) C: (33, 11) D:…

A: Slope of the line can be found out by simply taking the ratio of difference price and quantity of…

Q: The following is a demand schedule for shoes: Price (Per Pair) $120 $100 $80…

A: Elasticity means the responsiveness of demand or supply to changes in price or other factors. When…

Q: The equilibrium level of real GDP is $ Real GDP Consumption (C) $6,200 6,850 7,500 8,150 8,800 B…

A: Real GDP, also known as Gross Domestic Product, is a measurement that captures the total value of…

Q: Instructions: After interacting on your own with the model above press the "Reset" button. Use the…

A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…

Q: Managers of movie theaters know that the price elasticity of demand for movie tickets is 1.5. If…

A: The firm wants to increase sales which means the quantity demanded for a product increases by 6%.…

Q: a demand given by Qs = 4000 - 100P. The marginal cost of one more alteration is constant and al to…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first three question for you.…

Q: 8a) How many units did a company sell at $25.92 if they have 24% of the $24,840,000 industry? (2)…

A: To solve these questions, we can use the following formula:Market share = Sales / Total market value

Q: (Figure: Demand Curves) The figure shows four different demand curves for four products: A, B, C and…

A: The elasticity of demand measures the responsiveness of quantity demanded to changes in the price of…

Q: Discuss an elastic and inelastic product. Why do you feel these products are elastic? inelastic? Are…

A: The degree of response exhibited by a dependent variable towards the independent variable is known…

Q: Subject: Manegerial Economics & Policy The maker of a leading brand of low-calorie microwavable…

A: since you have asked multiple questions and according to policy we can solve only 1 question and for…

Q: 10) A restaurant owner sells 100 dinner specials for $10 each. After raising the price to $11, she…

Q: A possible explanation for a change in supply from S2 to S1 is (a) increase in the number…

A: The graph depicts two supply curves, S2 and S1. S1 represents a lower quantity supplied at each…

Q: The elasticity of demand for apples is estimated to be -1.75. If the price of apples falls by 10%,…

A: Price elasticity of demand is a measure of the responsiveness or sensitivity of the quantity…

Q: C= 2000 + 0.5(Y-T) T= 200 G= 400 I= 500 10. Refer to the table above. If government spending…

A: Given that ( in $ ):- C = 2000 + 0.5 ( Y - T) T = 200 G = 400 I = 500 Equilibrium output when G…

Q: 4-Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 percent, what…

A: Expenditure refers to the total amount of money or resources spent or consumed in the process of…

Q: 23) Suppose the price elasticity of demand for a product is 1.8. If a supplier wants to increase…

A: Price elasticity of demand is referred to the change that occurred in the quantity of the product in…

Q: The management believes that every 5% increase in the selling price of one of the company's products…

A: Formula to calculate price elasticity of demand:- Price elasticity of demand=Percentage change in…

Q: Suppose that you are interested in choosing a set of investments {1,...,7} using 0 - 1 variables.…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Questions 5-9: Mary owns a cookie shop. One day, she decides to have a customer appreciation day and…

A: Demand refers to the quantity of goods or services that a consumer is willing and able to buy at a…

Q: img' (a If po increases, what happens to the demand and supply of public transportation (shifts…

A: Cross-price elasticity of demand (XED) is a measure of the responsiveness of the quantity demanded…

Question

100%

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

11.) In the market for cars, the price elasticity of supply is +1.5, and the price elasticity ofdemand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million.(a) Assuming supply and demand are linear, reconstruct and draw the supply and demandcurves. Label the intercepts.(b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after thetax? What is the new equilibrium quantity? Illustrate them on the same graph.(c) How big is the change in consumer surplus, producer surplus, government revenue, anddeadweight loss?
6) Your income rises from $2,000a year to $10,000 and your purchases of beer change from 10 to 40. What number below most closely approximates your income elasticity over this range? A) 1 B) 1.25 C) 0.75 D) 0.25
Please give me correct answer with full explanation otherwise i give downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Compute to three decimal places. (See attached) Initial values are: PX = $9500 PY = $10000 I = $15000 A = $170000 W = 160 This function is: Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W
Plz solve this Attached question sir ......plz
C= 2000 + 0.5(Y-T) T= 200 G= 400 I= 500 9. Refer to the table above. The equilibrium level of income is: (A)4,800. (B) 5,800. (C) 4,600. (D) 5,600.
34. The point price elasticity of demand for red herring is −4. The demand curve for redherring is: Q = 120 − P. What is the price of red herring?(a) $96(b) $80(c) $100(d) $120(e) None of the above.
Q.3 - An economist has estimated demand of D = 1000 − P and Supply of S = 400 + 10R for onions, where R is the number of days of rainfall. (a) Plot the demand and supply curves. (b) Show the equilibrium quantity and the equilibrium price on the graph. (c) Use Algebra to determine the equilibrium price and quantity (d) Use a new graph of demand and supply curves to show the effect of an increase in rainfall
The company recently changed the selling price of one of its products from P50.00 to P45.00. The unit sales changed from 2,000 to 2,350. Tax rate is 30%. The product's price elasticity of demand is closest to: a. -0.16 b. -2.12 c. 1.53 d. -1.53 e. -1.97 f. -1.07
You are analysing the annual revenue from the top 5 coffee maker models manufactured in your company, and want to know the comparative revenue made from each model. Rank these 5 coffee makers based on the revenue made this year, from highest to lowest.