ANSWER THE FOLLOWING AND BASE ON THE FORMULA GIVEN IN THE IMAGE 1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As a result, the quantity of their product sold went from 700 bikes to 500 bikes. Compute for the price elasticity of demand. Indicate whether the product’s demand is elastic or inelastic. 2. Miko is a collector of matchbox cars. He used to buy five (5) cars every payday. However, when his income was raised from P17,000 to P20,000, he started to buy 10 cars. What is the income elasticity of demand?
ANSWER THE FOLLOWING AND BASE ON THE FORMULA GIVEN IN THE IMAGE 1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As a result, the quantity of their product sold went from 700 bikes to 500 bikes. Compute for the price elasticity of demand. Indicate whether the product’s demand is elastic or inelastic. 2. Miko is a collector of matchbox cars. He used to buy five (5) cars every payday. However, when his income was raised from P17,000 to P20,000, he started to buy 10 cars. What is the income elasticity of demand?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 2E: The price elasticity of demand for personal computers is estimated to be 2.2. If the price of...
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ANSWER THE FOLLOWING AND BASE ON THE FORMULA GIVEN IN THE IMAGE
1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As a
result, the quantity of their product sold went from 700 bikes to 500 bikes. Compute for the price
2. Miko is a collector of matchbox cars. He used to buy five (5) cars every payday. However, when
his income was raised from P17,000 to P20,000, he started to buy 10 cars. What is the income
elasticity of demand?
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