(Figure: The Demand for Online Movies) Use Figure: The Demand for Online Movies.If the price of online movies decreases from $6 to $4, total revenuewhichmeans that demand isPrice$10864306090QuantityOchanges from $60 to $90; elastico remains constant; unit-elasticchanges from $240 to $360; elasticOchanges from $40 to $50; inelastic

Total revenue is the product of price and quantity. Marginal revenue is the change in total revenue…

Answered: (Figure: The Demand for Online Movies)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Suppose that when the price of a burger decreases from $2.00 to $1.75 and other things remian the smae, the quantity demanded of burgers increases form 200 an hour to 400 an hour and the quantity demanded of pizza decreases from 400 an hour to 200 an hour. At the same, the quantity demanded of soda increases form 150 an hour to 300 an hour. 4a. Calculate the cross elasticity of demand for soda with respect to burgers.
1. The graph below shows the demand curve of two goods by an individual, use the information in the graph to answer the questions that follows; Price GH¢30.00 A GH¢25.00| C D1 D2 2000 2500 3000 Quantity (gallons per day) (a) Calculate the price elasticity of demand for the demand curve, D1, from point A to point C, and the price elasticity of demand for D2 from point A to point B. which demand curve is more elastic, Di or D2? Briefly explain your answer. (b) Given the expenditure function as e(p.q)=pg where p is the price and q is quantity demand. Suppose the individual was purchasing 2000 gallons per day at a price of GH¢30.00 per gallon and the price is cut to GH¢25.00 per gallon. calculate the | change in total expenditure if the demand curve of the individual is D1? What will be the change in total expenditure if demand is D2? 2. Discuss any four factors that would cause an increase in demand of petroleum engineering program in Ghanaian universities.
1. From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic. Points P A 60 3,000 B 70 2,800 C 80 2,600 D 90 2,400 100 2,200 110 2,000 120 1,800 130 1,600 Table 5.5
2. Suppose you have an elasticity of - 2 and the CMg of $ 15.45 per unit. Determine the pricing. CMg (marginal cost)
Homework (Ch,05) PRICE (Dailare perpound) 2 . Slope: -0.05 010 20 30 40 W Demand 70 00 90 100 QUANTITY (Thousands of pounds of tomatoes) 9 According to the midpoint method, the price elasticity of demand for tomatoes between point X and point Y is approximately) that the demand for tomatoes is between points X and Y. which suggests C
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In the figure below, what is the point price elasticity of demand when price is $60? 120 P Price ($) 100- 80 60 40 14 20- es Correct! Demand 0 200 400 600 800 1,000 1,200 Quantity O -0.50 -1.60 -2.00 -0.75 -1.00
Suppose the cross-price elasticity of café latte to the price of milk is -0.6. If the price ofmilk rises by 20%, what happens to the quantity of lattes demanded? What can you say aboutthe relationship of these two goods?
2. Imagine that you run a small bakery. In March the price of a cupcake was $2, and you sold 50 per day. In April you increased the price of cupcakes to $3 and you sold 40 per day. 1. Did your revenue increase or decrease? 2. What was the price elasticity of demand to Cupcakes when price increased from $2 to $3. 3. Do you think demand was elastic or inelastic prior to the change in prices
Answer the question, using the 3 step approach 4. Explain the cross-price elasticity of demand of I0GO yoghurt when the price of Yop yoghurt reduces?
when the price is $7 consumers want to spend $345.24 on spaghetti. when the price is $5 consumers want to spend $267.85 on spaghetti. what is the elasticity of demand between these prices?
1. What is price of elasticity? Explain many types of price elasticity and give complete your answer with value for each type elasticity

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