Explain why the choice between 1, 2, 3, 4, 5, 6,7, and 8 "units," or 1,000, 2,000, 3,000, 4,000, 5,000, 6,000, 7,000, and 8,000 movie tickets, makes nodifference in determining elasticity in the table below.Total QuantityofElasticityCoefficientTickets Demandedper WeekPriceTotal-TotalRevenueper(Ed)ThousandsTicketRevenueTest1Elastic$85.00$8,000272.6014,000Elastic31.5718,000ElasticUnit451.0020,000elastic20,000540.64Inelastic30.3818,000Inelastic6720.2014,000Inelastic10.008,000Inelastic

Answer - From the table we can see that price of per ticket is fixed . By the definition of…

Answered: Explain why the choice between 1, 2, 3,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Danny "Dimes Donahue is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $2.50 each, he sells 100. At a price of $2.00 each, he sells 300, Instructions: Use the midpoint method and round your answer to two decimal places. Do not include a negative sign(-) a. What is the elasticity of demand?
The demand for ceiling fans can be modeled as D(p) = 25.02(0.992) thousand ceiling fans where p is the price (in dollars) of a ceiling fan. (a) Locate the point of unit elasticity. (Round your answers to two decimal places.) The point of elasticity occurs when p = $ and D(p) = thousand ceiling fans. (b) For what prices is demand elastic? For what prices is demand inelastic? (Round your numerical answers to two decimal places.) Demand is inelastic for < p < Demand is elastic for p ? ✓
If a 10-percent increase in price decreases the quantity demanded by 36 percent, the price elasticity of demand is 11.(Enter your response as an absolute value rounded to one decimal place.) Note: Don't use chat gpt.
The price of DVDs falls from an average of $22 to $16. As a result sales increase from 50,000 units per year to 85,000 units. What's the price of elasticity
5. If the price falls from $3 to $2, and the quantity demanded rises from 200 to 400 units, compute the price elasticity of demand using the midpoint method. A) B) C) D) 2.00 1.67 0.67 0.60 Show your work here Formula Calculation Answer This good is INELASTIC ELASTIC UNITARY ELASTIC (circle one)
When the price of a plane ticket on Virgin Atlantic rises from $200 to $250, the number of business travellers per month falls from 2000 to 1900. At the same time, the number of vacationers per month falls from 800 to 600. State whether the elasticities for (i) business travellers and (ii) vacationers are elastic or inelastic.
The subway fare in your town has just been increased from 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 30 percent. What is the price elasticity of demand for subway rides? –0.45 0.45 2.22 –2.22
Price ($/visit) 12 $ 10 8 2 0 1 Elastic 2 Unit Elastic 3 4 Inelastic 5 Quantity (visitors/day) 6 7 What price should you charge if your goal is to maximize your revenues from tickets sold? Instructions: Enter your answer as a whole number. 6 per visit.
If the price elasticity of demand is equal to 2, a 1 percent increase in price will cause the quantity demanded to -_ by __-- percent. increase; 0.5 decrease; 2 decrease; 0.5 increase; 2
Diamond Sisters (a monopolist in the sale of diamonds) has decided to increase the price of their industrial-grade diamonds by 10%. You know from past studies that the elasticity of demand for industrial-grade diamonds is -.8. What would you predict would happen to the quantity of industrial-grade diamonds sold, and to the total expenditure on said diamonds?

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