Continuing the previous example, by how much will the demanded quantity change if the price of apples increases to 1.5? O It will decrease by 0.4 million kilos. It will decrease by 0.5 million kilos. O It will increase by 2 million kilos. It will increase by 0.5 million kilos. All the other answers are wrong.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Q7

Q7
Continuing the previous example, by
how much will the demanded quantity
change if the price of apples increases
to 1.5?
It will decrease by 0.4 million kilos.
O It will decrease by 0.5 million kilos.
O It will increase by 2 million kilos.
It will increase by 0.5 million kilos.
All the other answers are wrong.
Transcribed Image Text:Q7 Continuing the previous example, by how much will the demanded quantity change if the price of apples increases to 1.5? It will decrease by 0.4 million kilos. O It will decrease by 0.5 million kilos. O It will increase by 2 million kilos. It will increase by 0.5 million kilos. All the other answers are wrong.
Q6
The demand function for apples
is the following.
Qn = 10 - Pn + 0.2Y +0.5 P.
- 2P, + 0.2A
Where:
Qn = annual sales of apples
(millions of kilos)
Pn = price of apples (£1 per kilo)
Y = disposable income in the
UK £trillions (£10 trillions)
Pc = price of a pies £ per kilo (£2
per kilo)
Ps = price of pear (£2 per kilo)
A = advertising measured in
hundreds of thousands of £5
(use as 5 in your calculations)
Transcribed Image Text:Q6 The demand function for apples is the following. Qn = 10 - Pn + 0.2Y +0.5 P. - 2P, + 0.2A Where: Qn = annual sales of apples (millions of kilos) Pn = price of apples (£1 per kilo) Y = disposable income in the UK £trillions (£10 trillions) Pc = price of a pies £ per kilo (£2 per kilo) Ps = price of pear (£2 per kilo) A = advertising measured in hundreds of thousands of £5 (use as 5 in your calculations)
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