Let's say that a grocery store observes that at $2.00 per gallon of milk, buyers purchase 800 gallons per day. The next week, the grocery store increases its price to $3.00 per gallon and buyers purchase 700 gallons per day What is the price elasticity of demand for milk? is it demand elastic or inelastic or unitary a2) A movie theatre sells 1,800 tickets when it charges a price of $11. After it lowers its price to $9, it sells 2,600 tickets. What is the price elasticity of demand for tickets for this movie theatre? Q3) If a consumers daily income rises from SR.300 to SR.350, his purchase of good X increases from

Let's say that a grocery store observes that at $2.00 per gallon of milk, buyers purchase 800 gallons per day. The next week, the grocery store increases its price to $3.00 per gallon and buyers purchase 700 gallons per day What is the price elasticity of demand for milk? is it demand elastic or inelastic or unitary a2) A movie theatre sells 1,800 tickets when it charges a price of $11. After it lowers its price to $9, it sells 2,600 tickets. What is the price elasticity of demand for tickets for this movie theatre? Q3) If a consumers daily income rises from SR.300 to SR.350, his purchase of good X increases from

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the graph for Yolanda's Frozen Yogurt Stand to answer the questions that follow Use the midpoint formula to calculate the price elasticity of demand for D, between point A and point C and the price elasticity of demand for Dy between point A and point Price elasticity of demand for D- (Enter your response rounded to two decimal places Be sure to include the mus sign (BUID JA AMIN) POL 4.00 3.15- 330 335 300 275 250 225 200 UN 1304 125 1.00 17H 650 she 100 Quanty (on per day) Di
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If the price of product X increases from $10 to$12, the quantity demanded for gasoline (X) will fall from 100 to 82 and the quantity demanded for product Y also fall from 90 to 63 but the quantitydemanded for product Z will increases from 50 to76. a.What is price elasticity of demand for X?b.What is cross-price elasticity of demand for Ywith respect to price X? What are X and Y?c.What is cross-price elasticity of demand for Zwith respect to price X? What are X and Z?
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. Suppose a ticket to a Rolling Stones concert is $400 and at that price, the quantity of tickets demanded is 47,000 per concert. Using the midpoint method of calculating percentage changes, if the ticket price increases to $500 and the quantity demanded decreases to 46,000, what is the price elasticity of demand for Rolling Stones concert tickets? Referring to the above, which is greater -- the % change in quantity demanded or the % change in price? What will happen to total revenue (TR) when the price increases to $500? Briefly explain.
If the price of sugar were to double, would you use less of it? Explain in terms of the determinants of the price elasticity of demand.
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