Let p denote the price of good X and consider the demand for good X of the following two consumers Dan: XD 191/p Sam Xs 142-8p Assume Dan and Sam are the only consumers interested in this good. What is the absolute value of the price elasticity of the aggregate demand for good X at the point where p = 1? You must input a positive number. Do not input a ratio, e.g. 2/9.

Let p denote the price of good X and consider the demand for good X of the following two consumers Dan: XD 191/p Sam Xs 142-8p Assume Dan and Sam are the only consumers interested in this good. What is the absolute value of the price elasticity of the aggregate demand for good X at the point where p = 1? You must input a positive number. Do not input a ratio, e.g. 2/9.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please answer fast
i. ii. iii. Suppose the demand function for a product is given by (3000-9 where p is in hundreds of RM and q is the number of tons. Determine the point elasticity of demand when the quantity demanded is 6 tons. is demand elastic, is it inelastic, or does it have unit elasticity at this point? Approximate the percentage change in price if the demand of 6 tons is decreased by 3%.
Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures.
Answer the next 2 questions according to information below: Suppose that Consumer A's demand for the good (commodity) X has increased in 16 per cent. Because the price of the close substitute good Y has increased in 8 per cent since and his demand for Y has decreased in 2 per cent. In that period of time, his own income has increased in 4 per cent and we know that this affected his demand levels. Calculate the cross elasticity of demand for goods X and Y.(Write below only the magnitude value: A positive integer). *
PRICE (Dollars per unit) 350 Z 225 175 Y W 50 Demand 0 10 35 45 70 QUANTITY (Units) For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. Elastic Inelastic Unit Elastic Region Between W and X Between X and Y О О Between Y and Z О О О True or False: The slope of the demand curve is not equal to the value of the price elasticity of demand. True False
Calculate and Show the Elasticity and TR at exactly the Middle Point in the Demand Curve.
Exercise: You study the arms market represented by the following demand function qd = 150 - p - 4pa, with p the price of an ammunition and pa the price of chromium molybdenum alloy, a steel used to make firearms. The supply function is given by q³ = -50 + 26p - 5pp, with p, the price of powder (an essential input for making ammunition) QUESTION: Compute the direct and cross-price elasticity of demand at equilibrium prices and quantities, for Pr=15 and p,=1
The income elasticity of demand of good B, is as follows: Good B: 0.2 If income rises by 5 %. By how much the quantity demanded of B will change?
Price 4 6 8 10 Market demand 40 35 30 25 New market demand - - - - (i) Plot the market demand at each pricelevel on a graph paper and label the demandcurve as DI(ii)Derive the market demand function for good x(iii) Suppose the price of acomplement good has fallen and caused a rise in the demand for good X by 25% at each price level, fill in the new quantity for market demand at each price level fill in the new quantity for market demand at each price level.(iv) Based on part (iii) plot the new demand curve on the same graph as in part (i) and label it as D2
Assume that the slope of the demand curve for carrots is (-5) If the price of carrots is $150 per ton and the quantity demanded at this price is 60 tons, then the elasticity of demand at this price is: Select one: a. 2 b. 5 c. 0.2 d. 0.5
Suppose that a large city has dozens of apartment complexes that are nearly identical in terms of size, age, and amenities. Assume the demand curve for an apartments at an individual complex is perfectly elastic. If the city places an excise tax on apartments, who will pay the tax? What will happen to the quantity demanded. Explain and show graphically. For graphical purposes, assume the supply of apartments is upward sloping.
The demand for hamburgers is given by Qd=10-p and the supply is Qs=4p-10, where pd and ps are, respectively the price paid by demanders and the price received by suppliers. A: Draw the demand and supply functions. What is the price-elasticity of demand? What is the price-elasticity of supply? B: Find the equilibrium quantity and price, and show them on the graph. C: Suppose due to the rising health awareness the demand decreases to Q d=5-p. Find the new equilibrium prices and quantity, and show them on the graph. D: Suppose that the demand and supply are as before, i.e. Qd=10-p and Qs=4p-10, but now the government imposes a quantity tax on the suppler at the rate of 1 per unit of the quantity. What quantity will be sold and what price? E: In part d), what is the total amount of tax collected by the government? How this tax amount is divided between the demanders and supplier? Who pays more and why? Explain