please do all answers. For the given demand-price function and quantity:price 15 quantity.55quantity = 210123a. Find the price associated with the given quantity:11b. Find the elasticity for the given quantity:c. State which pricing strategy increases revenue:Lowerd. Find the price and quantity that maximizes profit:7.5412.5pricequantity:

Demand measures the willingness and the ability of the individual to pay for the commodity. The…

For the given demand-price function and quantity: — price = 15 quantity; quantity = 210 55 a. Find the price associated with the given quantity: 123 11 b. Find the elasticity for the given quantity: O c. State which pricing strategy increases revenue: Lower

For the given demand-price function and quantity: — price = 15 quantity; quantity = 210 55 a. Find the price associated with the given quantity: 123 11 b. Find the elasticity for the given quantity: O c. State which pricing strategy increases revenue: Lower

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

See similar textbooks

Related questions

Q: Fill out the following table to answer Questions Q32 through Q36: Quantity Price Total Revenue…

A: Since you have posted multiple question. As per answering guideline, we will solve first three…

Q: If the price of a product was $600, but the supply and demand curves remained unchanged, answer the…

A: Demand is the quantity of things that consumers are willing to purchase at a specific price and for…

Q: An externality is the indirect cost, the overhead, of producing a product. is the cost of producing…

A: The production of goods and services sometimes incurs some costs and benefits on society. Such costs…

Q: Complete the following table by computing the total profit (the chemical plant's economic profit and…

A: No recycling= 2900+1700= 4600 Recycling= 2600+2500= 5100

Q: Pollution (In Tons Of CO2) Cost of Removing One Ton of CO2 (Firm X)-25 $400 (Firm Y)- 25 $200 1.…

A: Pollution in Tons Cost of removing a ton X - 25 400 Y - 25 200 Cost of removing 3 tons of…

Q: 6. Suppose you are running a 5 mile race. There is a water station. It will take you time to drink…

A: The equation for time saved is 30-10b where b represents the number of bottles consumed.

Q: Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college…

A: The cost in 2018 can be calculated by multiplying the prices in 2018 with the quantity in the…

Q: A consulting company estimated market demand and supply in a perfectly competitive industry and…

A: find the answer below

Q: Under which of the following circumstances does the traditional command and control work better than…

A: The approach which in turn compels all the companies for the implementation of similar control…

Q: 24 12 If the price of a telephone increases from $5 to $10 an hour and nothing else changes, then

A: Optin c is the right answer marginal cost would not change Reason:- Here the price of the…

Q: 2. An infinite number of sellers exist in this type of market. 3. It is a past expenditure that…

A: Factors of production are the inputs used in the process of production, these can be labor(L),…

Q: What is the impact on the national saving rate if the consumption and government share each increase…

A: Answer in step 2.

Q: 10. Total economic surplus The following graph plots the supply and demand curves in the market for…

A: In terms of economics, the consumer surplus is the difference between the price a consumer pays for…

Q: Last week you sold 800 units of a good at a price of $90 each. This week you would like to sell 950…

A: Price elasticity of demand = percentage change in quantity demanded/ percentage change in price

Q: A monopsonist has the production function Q = 4· L and faces the following labor supply and product…

Q: Suppose that both of the vents you ve just analyzed are partly responsible for the ease in the price…

A: 1. According to the first group of students, a decrease in supply caused an increase in price as…

Q: A monopolist chooses their output quantity to: OA. Make marginal revenue less than marginal cost B.…

A: Monopoly: A monopoly is a type of market composition wherein there exists only one seller for a…

Q: Refer to the following supply and demand schedules for the market for yo-yos. Price Qd Qs $1 100 10…

A: 2) At P= 2, Qd= 80 and Qs= 35 Since quantity demanded exceeds quantity supplied at price $2, there…

Q: Consider a firm in a competitive market. The marginal cost curve starts at $37 and hits its minimum…

A: A competitive firm earns zero economic profit when its price is equal to average total cost.

Q: Below presents the sustainable yield curve (measured by tons) for a fishery as a function of the…

A: Given, Effort = Number of boat fishing x Number of weeks per boat. a) In the first figure, the…

Q: Which of the following statements accurately describes w would happen as a result of this news?…

A: Equity can be defined as the condition in which the demand for a particular item or product is…

Q: Use the results of your answers on both the Scenario 1 and Scenario 2 graphs to complete the…

A: Due to increased medical concern over lead pencils have led to steer away from pencils use in favor…

Q: a. Using a correctly labeled graph for Fresh Farm, show each of the following in the short run. i.…

A: (Note: Since there are multiple parts, only the first three have been solved). In case of perfect…

Q: In the 1990s, the Thai baht was pegged to the U.S. dollar at a rate of $1.00 = 25 baht. This is…

A: To sustain the pegged rate, the Bank of Thailand increase then Thai interest rates to catch the…

Q: If the price of beef was $45.00 what is the optimum number of cows and the profit or loss at that…

A: Solution:- (i) If the price is $45., the optimum level of input is 50. At this level, we get $1366.2…

Q: 2. The production function and economic growth The production function of a hypothatical economy is…

A: The production function is representative of the relationship between the factor inputs used in the…

Q: ABCDEFGH I> J Price (per Ounce) $0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 Quantity Demanded…

A: Price Elasticity of Demand measures the percentage change in quantity demanded due to percentage…

Q: Q2.Average cost curves (except for average fixed cost) tend to be U-shaped, decreasing and then…

A: Average Cost(AC) is the cost of each unit that is evaluated by dividing Total Cost by the amount of…

Q: a) Determine the cyclical behaviour of the key macroeconomic variables of the model! b) How do the…

A: The model is based on an identical voting population that places a high value on low unemployment…

Q: In a model with no government or foreign sector, if autonomous consumption is c30, investment is…

A: MPC is the Marginal propensity to consume which shows the ratio of change in change in consumption…

Q: The purpose of the SEC Code of Corporate Governance is to promote the developments of a strong…

A: Corporate Governance is the system by which the companies are directed and controlled. The boards of…

Q: 8. A competitive industry currently has 100 identical firms. Each firm has costs TC(q) = 18 +2q +…

Q: Assume you have the following model (use interest rates as a whole numbers): C = 200 + (0.8)Yº YO =…

A: Given Consumption function: C=200+0.8YD ..........(1) Investment function: I=300-4.4i…

Q: Suppose an economy's growth rate of real GDP per capita is 5%. a. If the country's inflation rate is…

A: GDP is the value of final goods and services produced in the economy within a given period of time.…

Q: Consumer confidence in the economy increases greatly, and consumers increase spending significantly…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose the central bank is using monetary policy in an attempt to hold real GDP permanently above…

A: Note:- Dear student as you have asked multiple questions, as per our policy we will answer only…

Q: A two-year coupon bond has a face value of $1,000, a coupon rate of 5% and a yield to maturity of…

A: Given: Face value (F) = $1000 Coupon rate = 5% Hence, coupon payment = 5/100 × 1000 = $50 Yield to…

Question

please do all answers.

For the given demand-price function and quantity:
price 15 quantity.
55
quantity = 210
123
a. Find the price associated with the given quantity:
11
b. Find the elasticity for the given quantity:
c. State which pricing strategy increases revenue:
Lower
d. Find the price and quantity that maximizes profit:
7.5
412.5
price
quantity:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define demand

VIEW

Step 2: Determine price

VIEW

Step 3: Determine elasticity

VIEW

Step 4: Determine pricing strategy

VIEW

Step 5: Find the profit-maximizing level

VIEW

Solution

VIEW

Step by step

Solved in 6 steps with 16 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is 1.5 and the advertising elasticity of demand is +0.6, would you expect an increase or decrease in total revenues?
Consider the following supply schedule: What is the price elasticity of supply between a. P = 10 and P = 8? b. P = 8 and P = 6? c. P = 6 and P = 4? d. P = 4 and P = 2? e. P = 2 and P = 0?
Prove that price elasticity of demand is not the same as the slope of a demand curve.
The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.
Suppose Sally buys exactly five bars of English toffee each week, regardless of whether the toffee bars are regularly priced at 1 or on sale for 0.50. Based on this information, what is Sallys price elasticity of demand for English toffee in this price range? a. 0 b. 1 c. Infinity d. Cannot be determined.
If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
If bus travel is an inferior good, its income elasticity of demand is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
(Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. a. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 400 units. b. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 500 units. c. Price falls from $2.25 to $1.75; quantity supplied remains at 600 units. d. Price increases from $1.75 to $2.25, quantity supplied increases from 466.67 units to 600 units.