If the price elasticity of demand is -0.8 and the firm increases price, revenue will O a. Increase O b. Decrease O c. Stay constant d. become zero, they would lose all their customers
Q: i. Find the condition under which the merger is profitable for firms 1 and 2 jointly (in terms of…
A: Oligopoly is an economic market structure characterized by a small number of large firms or…
Q: In Example 2.8, we discussed the recent increase in world demand for copper, due in part to China's…
A: Demand shows the relation between P and Q that consumers are willing to buy, assuming all other…
Q: The following data for I and I are in format [I,J]. First cost in $: [-150,000, -250,000], Annual…
A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…
Q: The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new…
A: Total cost is the sum of fixed and variable costs. The average total cost is per unit of the total…
Q: You have been driving for about 3 hours early in the morning which of the following indicates that…
A: The issue raised has to do with driving safety and identifying the telltale symptoms of driver…
Q: P P^ = 6 A Select one: B C Q₁ = 10 S According to the graph shown, if the market price decreases…
A: Producer surplus is the difference between the price received by the producer and the market price…
Q: How do you address issues of homelessness in the future?
A: Addressing homelessness in the future begins with proactive measures to prevent individuals and…
Q: What term is used to describe goods that can replace each other to some extent, so that a rise in…
A: Substitute goods: 2 goods X and Y are substitutes if price of good X and demand for good Y are…
Q: Determine whether each of the following statements is true or false and justify your answer. (1) The…
A: Rationalizable Action Profiles: These are strategies in a strategic game that are considered…
Q: Using the graph, complete the table that follows by indicating whether each statement is true or…
A: A supply curve is a curve that shows the relationship between the price of a good and the services…
Q: Imagine that you are managing a small firm and thinking about entering the market of a monopolist.…
A: Predatory Pricing: A strategy where a dominant firm temporarily lowers prices to drive competitors…
Q: Which of the following is true regarding different types of inflation? Cost-push inflation is…
A: Cost-push inflation: An inflation type driven by increased production costs, leading to higher…
Q: 2. All of the following are types of macroeconomics data except the: A) price of a computer. B)…
A: The branch of economics that studies the behavior of individual economic agents, such as consumers,…
Q: Which of the following could cause a change in the feasible region? Removing a redundant constraint…
A: Linear Programming:It is a technique that is used to minimize costs and maximize profit. We do this…
Q: Your client has a $200,000 Homeowners Comprehensive policy. Due to a fire which causes substantial…
A: The Homeowners Comprehensive policy typically includes a provision for Additional Living Expenses…
Q: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of…
A: The incremental cost-benefit analysis is used to study the difference between the monetary benefits…
Q: What happens to a competitive firm whose cost function exhibits decreasing marginal cost everywhere?…
A: A competitive firm in a market is typically characterized as a price taker, meaning it accepts the…
Q: A building worth $100,000 is insured for $60,000 under a policy with an 80% co-insurance clause.…
A: A co-insurance clause is a provision in an insurance policy that needs the insured party to maintain…
Q: An increase in the minimum wage causes the quantity supplied of labor to of labor. labor and thus…
A: And increase or decrease in the wage rate will affect the labor supply and demand curve.
Q: Answer the following question and submit to the appropriate space on Canvas. Be careful to…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…
Q: How do you demonstrate professionlism as a student in social work?
A: Demonstrating professionalism as a student in social work begins with upholding ethical standards…
Q: Refer to the graph for a private closed economy. In this economy, investment is. O $200 billion.…
A: The equilibrium is where the planned spending is equal to real GDP. The planned spending is equal to…
Q: Let attached table be data of goods X1 and X2, at a ratio: Where MU X1 is Marginal Utility for X1…
A: In economics, utility refers to the satisfaction or benefit that individuals derive from consuming…
Q: It's the Superbowl. The Seahawks are on the goal line with only a few seconds to go. They can pass…
A: The average lottery payout is known as the expected payoff. If someone consistently chooses a…
Q: An engineer calculated the AW values shown for retaining a presently owned machine additional years.…
A: Economic service life, often referred to as the economic life or service life, is a concept in…
Q: Let us consider the cost implications of the short-run production schedule from assignment number 7,…
A: The expenses such as labor, materials, overhead, and other resources needed to produce goods or…
Q: What economic theories are most useful when applied to the healthcare industry and why?
A: Healthcare economics theory examines the allocation of resources and decisions-making in the…
Q: 1 2 3 Based on the above chart and assuming that without seasonality each quarter will have equal…
A: An indicator of how a specific season within a cycle compares to the average season within that…
Q: Consider a small family restaurant. List at least four different examples of explicit costs of the…
A: Costs:Costs are the money spent on producing goods and services by the producer. Costs are thus the…
Q: A well-known professional football player contacts you for Travel Health insurance. He tells you he…
A: Scuba Diving: A water sport involving underwater swimming with the use of a self-contained breathing…
Q: In a essay explain in details the main economic mobility for a person to attain a better future such…
A: Economic Mobility:Economic mobility refers to an individual's or a family's ability to improve their…
Q: According to the short-run Phillips curve, when actual output is unemployment rate rises. above;…
A: Phillips curve refers to a curve that shows an inverse relationship between inflation rate and…
Q: The bimatrix represents a simultaneous move game between Rowena and Colin. Rowena's payoff is the…
A: Nash equilibrium is a situation where no player has an incentive to deviate from the strategy of…
Q: Choose all statements that are true. A. The supply curve represents the behavior of sellers and the…
A: A supply curve is a curve that shows the relationship between the price of a good and the services…
Q: A company has established that the relationship between the sales price for one of its products and…
A: Profit maximization is an objective pursued by firms. It entails optimizing their output and pricing…
Q: 5. The market for loanable funds and government policy The following graph shows the loanable funds…
A: Loanable Funds Market: In the market for loanable funds there are economic agents like governments,…
Q: Your student group is setting up an internship fair. You invite companies looking for interns and…
A: The distribution of this subsidy could significantly sway the dynamics of the internship market,…
Q: If you borrow $24,000 now at an interest rate of 10% per year and promise to repay the loan with…
A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…
Q: 2. For the matrices below, indicate whether the operations listed under (a) ( are well defined. If…
A: The sum and subtraction of a matrix is defined if both the matrices are of same dimension.The…
Q: $/q 16 14 12 10 8 6 542 0 1250 500 O250 MC 750 ATC In the above figure, the monopolistic…
A: In monopolistic competitive industrry there exist several companies that offer differentiated…
Q: If products A and B are substitutes, products B and C are complements and the markets for products A…
A: Substitute goods:The change in the price of one good causes the quantity demanded of the other to…
Q: Monopolistically competitive firms: A. incur losses in both the short run and long run. B. may…
A: A market structure known as monopolistic competition blends aspects of perfect and monopoly…
Q: Operating costs are an important criteria when selecting what machinery would be the best choice for…
A: An investment's equivalent uniform annual worth is the equivalent annuity that corresponds to all of…
Q: The following graph shows the supply of and demand for capital in a market over the last year. You…
A: The demand and supply of capital determines the equilibrium interest rate in the capital market.…
Q: What is microeconomics How does inflation help in the redistribution of income? A) Disproportional…
A: Microeconomics is the study of individuals, households and firms' behavior in decision making and…
Q: Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is…
A: An import quota is a trade restriction that sets a restriction on the quantity of goods that can be…
Q: Find the supply curve associated with the marginal cost function shown below Mc 9 8 7 6 5 4 3 2 1 2…
A: In this case, we have to discuss the term marginal cost and supply curve of a firm. The marginal…
Q: Zimbabwe has experienced several bouts of hyperrinflation over the past decade. Analyse the…
A: Hyperinflation: Hyperinflation is an extremely high and accelerating inflation, exceeding 50% per…
Q: hen quantity demanded decreases in response to a change in price for the good: the demand curve…
A: The law of demand states inverse relationship between price and quantity demanded. When price rises,…
Q: a. If the present price level is 100, the growth rate of real GDP is b. If the present price level…
A: The real economic growth is the overall growth of productivity after the inflation rate is adjusted.…
Please give me correct and incorrect explanation
Note:-
Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality.
Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- Snooki, a new marketing intern, was a little scatterbrained during the first meeting with her manager, when she made four statements about pricing. Which one of her four statements about pricing was correct? a. A product with an elastic demand is likely to face little competition. b. An EDLP retailer offers many price promotions. c. A product with an elasticity of demand of -0.7 will enjoy increases in revenue when prices are cut. d. Cost-plus pricing is not the perfect pricing strategy because the pricing method ignores customers’ willingness to pay and competitors’ pricing strategy.suppose a pharmaceutical company considers increasing the price of insulin tm $125 per vial to $300 per vial. whenthe price was $125, the company sold 100, 000 vials per day. the company knows its price elasticity is .25. calculate thepercentage change in quantity demanded that would result in a price elasticity of .25. show your workPoints Price Qty Demanded A 50 150 B 45 200 C 40 250 D 35 300 E 30 350 F 25 400 G 20 450 H 15 500 I 10 550 Please add a fourth column for Total revenue and a fifth column for Price Elasticity of Demand The income of Mr. De la Cruz increased from P300 to P450 a day. His demand for grocery items increased from 200 to 500. Compute for his income elasticity of demand. The price of product A increased from P20 to P40. The demand for Product B went up from 100 to 200. Calculate the cross elasticity of demand.
- Question 2 Bowleg flips houses. He advertises to sell houses at $40000 per house. He sells 500 houses. He raises the price to $60000 and sells 400 houses. What is the elasticity of demand?Good or Service Price Elasticity Income Elasticity Beef -0.5 0.51 Long Distance Telephone -0.32 1.2 Cigarettes All smokers -0.7 0.9 Ages 15-18 -1.4 1.5 What will happen to sales for long-distance telephone if its price increases by 5% and income increases by 8%? Select one: a. Sales will decrease by 5%. b. Sales will increase by 5%. c. Sales will decrease by 8%. d. Sales will increase by 8%.20. The next year revenue budget for Josiah’s department calls for an increase of 20%. After a great deal of research, he has determined that the price elasticity for his best-selling products is 1.25. In this situation, Josiah should take which following action in order to increase revenue from these products? Group of answer choices a. Keep the prices the same b. Offer a buy one/get one sale c. Decrease prices d. Raise prices
- The dealer increase price of TV by 5 percent then quantity increase by 10 percent. find the elasticity of demand.When Maha earned AED 17,000 per month, he used to spend 1,000 dirham a months in supermarket A. Now that he earns AED 28,000 per month, he spends 1200 dirham in supermarket A every month. A. Calculate income elasticity of demand B. What type of products do supermarket A sells according to your result in A? Explain.Breakfast A price number sold per week (AED) 55 100 60 95 65 93 70 86 In a cafeteria Ibrahim found the data above with a very popular breakfast that they sell. A. Calculate the total revenue with every price of the breakfast (4 B. What is the maximum revenue possible? C. Using the standard formula, calculate the price elasticity of demand when the price changes from 60 to 65 dirham. D. According to your results in A, B and C, what is the best decision that Ibrahim should take about the price he should charge for the breakfast Mac)
- For a firm with the market power, the perfect maximize and price of a product is______ to the absolute value of the demand elasticity A directly related B. Not related C. Logarithmically related D. Inversely related1. The sylvan corporation has estimated the pice elasticity of demand for synthetic wood sorrel to be -0.25. a. If the price of sylvan's wood sorrel increases by 10% what will happen to the quantity demanded of wood hewers. b. What will happen to sylvan revenue as a result of price increase?Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625 customers per week. During a recent promotion on the eve of India’s Independence Day , Shalimarcut its price to INR 25 each and observed an increase in sales to 750 plates per week.a. Calculate Shalimar’s price elasticity of Demand b. Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc. How many plates should Shalimar expect to sell at the new price?d. Does the move make sense in the light of Shalimar’s intent to increase revenue?