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Vina Technology makes LCD display for mobile phones. In 2020 they sold 10,000 units at $400 each. Vina Technology have determined that the midpoint price elasticity for the LCD displays is −4.33. In 2021, Vina Technology is planning to increase the price of the LCD displays to $500.
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- You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.26, and since then the absolute PED of Masks declined by 30% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - Insert one word answer (increase/decrease/unchanged) (b) The market price of the mask in July was Tk15 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk26 per unit and the quantity of masks sold in August is 9 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August. Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.Filll in the values in the equation to calculate the PED for the Malabar coffee Price Elasticity of Demand (PED)= abs( % / % )=
- Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A/ % and that Amazon's revenue will (increase/decrease) A by (enter a number rounded to one digit after the decimal point, e.g., 9.9) A %.Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not-1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $50 to $35, causing his quantity demanded of e- magazines he reads on his computer to rise from 4 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are complementary products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 15,000 when the average price of a hairstylist's cut rises from $30 to $50 per hour. The numerical value of cross-price…Help Calculate the numerical value of cross-price elasticity, exy, in each of the following situations. Do not round your interim calculations before obtaining the final solution (i.e. do not clear your calculator). In each case, express the number to two decimal places and include a negative sign where appropriate (i.e. -1.67, not -1.7 or 1.667) but leave positive values without a plus sign (i.e. 1.67, not +1.67). Identify whether the two products in italics are substitute or complementary products. a. The price Consumer X pays each month for access to the Internet decreases from $40 to $20, causing his quantity demanded of e- magazines he reads on his computer to rise from 3 to 5. The numerical value of cross-price elasticity is The Internet and e-magazines are (Click to select) v products. b. The quantity demanded of do-it-yourself hair-cutting sets increases from 5,000 to 10,000 when the average price of a hairstylist's cut rises from $25 to $40 per hour. The numerical value of…
- If worldwide annual sales of smartphones in 2014-2016 were projected to be approximately q=-3p+1,088 million phones at a selling price of ?p dollars. Find the price elasticity of demand when the price is 150. Do not round till the end, then round to two decimal places.The demand for product X is 10 000 pieces for the price of EUR 120. The price has increased to 140 and the demand for the product X has dropped to 8 000 pieces. Calculate the price elasticity of demand.The cross price elasticity of widgets and gadgets is 4. If gadget prices rise by 15%, the widget sales will increase by 60% correct? 4X15%=60%
- Relative Inelasticity: E<1 If the price of coffee (0.3) increases by 10%, how much will unit sales decline? Relative Elasticity: E>1 If the price of airline travel (2.4) increases by 10%, how much will unit sales decline?Consider the product of gasoline. Its PES is estimated at 1.6. Which of the following would be true? a) Gasoline’s supply is inelastic b) Its supply curve is a steep, upward sloping line c)Its supply curve is a vertical line d) Its supply curve is a flat, upward sloping line e) None of the above 2. Think about the market for gasoline again. Due to the rise of electrical and hybrid cars, there is a decrease in tastes and preferences for gasoline. What is the effect on this market? a) Price falls and quantity increases b) There is a greater decrease in quantity than in the price c)There is a greater increase in quantity than in the price d) The demand curve will become more steep e) None of the above 3. Please complete the following sentence. The more inelastic the supply curve... a) the more consumer surplus created by implementing a tax on a product b) the greater the tax burden on the buyers c)the greater the tax burden on the sellers d) the more a shift in the demand curve causes…Own price elasticity of demand for vibranium has been estimated at 0.8. As a result a mining accident, quantity decreases 3%. What is the predicted percent change in price? In calculating changes, you may be tempted to use midpoints. Don't. Trust me. Round the percent change to two decimal places and do not enter the % sign. If you predict a 10.125% decrease in price, enter -10.13.) Correct Answer 3.75