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- A rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. Kindly Answer ONLY (d) a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity.b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.What is the law of demand and how does it explain consumer behavior in response to changes in the price of a good or service?Describe in your own words :Law of Demand Demand schedule Utility Marginal Utility Diminishing Marginal Utility Income Effect Substitution Effect Demand Curve Determinants of Demand Change in Demand v. Change in Quantity Demanded Price changes v. Non-price determinant changes
- Question 2 Explain why the demand curve’s slope gets flatter as more (identical) consumers are added to the market – hint: consider the effect on quantity demanded when price falls in the presence of a larger or smaller number of consumers.10) A decrease in the price of a substitute good would be represented by a movement fromPrice (dollars per can) 2.50 2.00 1.50 1.00 0.50 D 2 3 4 Quantity (cans of soda per day) The graph illustrates the demand curve for soda. After a rise in the price of a soda From $1.00 a can to $2.00 a can, the quantity of soda demanded A) decreases from 1 can to 0 cans a day. B) remains unchanged. C) increases from 0 cans to 2 cans a day. D) decreases from 2 cans to 0 cans a day.
- course 'Mathematics for Business and Economics(1)' The demand and supply functions of a good are given by P = -1Qp + 52; P = 3Qs + 6. of Determine the Equilibrium Quantity Determine the Equilibrium PriceQUESTION 1 A recent storm resulted in massive damage to numerous fishing boats. This made fishing difficult for the affected fishermen. As a result, the price for 1 kilogram of fish rose from $14.70 to $18.70. Which of the following statements is true? O The demand for fish will decrease. O The demand of fish will increase. O The quantity demanded of fish will increase. O The quantity demanded of fish will decrease. O The change in price is associated with the movement along the supply curve.A rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity. b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.
- 2) The following figure shows the demand curves for pens for two consumers. Price 40 Quantity Refer to the figure above and answer the following questions: a) How do you derive the market demand curve? Explain. b) Assuming that the market consists of only these two consumers, what is the market demand for pens when the price is $4? ) Assuming an increase in the price of notebooks, what will be the likely effect on consumers' demand for pens? Explain in terms of possible change in demand curves.When economists say the quantity demanded of a product has increased, they mean the demand curve has shifted to the left. demand curve has shifted to the right. O price of the product has fallen, and consequently, consumers are buying more of it. price of the product has risen, and consequently, consumers are buying less of it.Identify the type of goods which have zero cross elasticity of demand. a. Normal goods b. Independent goods c. Dependent goods d. Substitute goods