Many movie consumers who used to rent DVDS are now patronising online video rentals, especially, streaming services.a. What impact did the advent of online video rentals and streaming have on the in-store movie industry? Use the demand and supplydiagram to illustrate your answer. Pay attention to how the equilibrium quantity and price adjust. Make state all your assumptions.b. Which would be more price elastic, the demand for Netflix online streaming or the demand for online movie rentals in general? Explain.c. Would the cross-price elasticity of demand for online movie rentals and in-store movie rentals be positive or negative? What does youranswer imply for the equilibrium price and quantity of online movie rentals? Use the demand and supply diagram to illustrate youranswer.d. Because of COVID-19 most people are staying indoors, yet they cannot afford online streaming movies, like Netflix. Should thegovernment regulate the price of online streaming? In your answer, critically discuss the pros and cons of price regulation.

Demand: It refers to the goods and services which the consumers are willing to but at different…

Answered: Many movie consumers who used to rent…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I. II. 6) The accompanying table shows the price and yearly quantity sold of souvenir T-shirts in the town of Pokhara, Nepal according to the average income of the tourists visiting. Price Quantity Demanded when Quantity Demanded when Income=20,000 Income 30,000 4 5 6 7 3000 2400 1600 800 5000 4200 3000 1800 Using the midpoint method, calculate the income elasticity of demand when the price of a T-shirt is 4 Nepalese Rupees and the average tourist income increases from 20,000 to 30,000 rupees. Also calculate it when the price is 7 rupees. Also answer the following questions for each cases ● The demand for this product is income elastic / income inelastic. ● Based on this information, T-shirts would be considered as (luxuries / necessities) Using the midpoint method, calculate the price elasticity of demand when the price of a T-shirt rises from 5 to 6 rupees and the average tourist income is 20,000. Also calculate it when the average tourist income is 30,000.
a. Define Price Elasticity of Demand. b. If Starbucks knows that the demand for their coffee is elastic, should Starbucks raise or lower the price of coffee in order to bring in more total revenue? Explain. c. What are the two main factors that the determine how “elastic” or "inelastic" the demand for a good will be? Explain.
This means that when the price of a certain commodity increases, automatically demand will fall and vice versa, all other things held constant. Select one: a. Law of demand b. demand c. quantity demanded d. elasticity of demand
Use the information below and Calculate the elasticity ,Determine the type of elasticity . At the initial price of 10$ for one kilo of oil olives , the quantity supply is 100 . when the price rises to $20 , the quantity supply increase to $120 . what is the elasticity of supply?
ANSWER THE FOLLOWING AND BASE ON THE FORMULA GIVEN IN THE IMAGE 1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As aresult, the quantity of their product sold went from 700 bikes to 500 bikes. Compute for the priceelasticity of demand. Indicate whether the product’s demand is elastic or inelastic. 2. Miko is a collector of matchbox cars. He used to buy five (5) cars every payday. However, whenhis income was raised from P17,000 to P20,000, he started to buy 10 cars. What is the incomeelasticity of demand?
Which of the following is one of the factors determining if demand for a good is price elastic or price inelastic? Select one: a. The cost of the resources used in producing the good. b. The relative share of the budget spent on the good. c. Whether the good is a substitute or a complement. d. Whether the good is imported or exported.
Which of the following statements about the price elasticity of demand are true? (Check all that apply.) Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit. For keyboard navigation... SHOW MORE a b It can be calculated as the percentage change in quantity demanded divided by the percentage change in price. C It shows the responsiveness of quantity demanded to a change in price. d It shows the percentage change in price caused by a 1 percent change in quantity demanded. It is the inverse of the slope of the demand curve.
Answer the following questions in your own words. Start a new thread while replying. 1. What are the determinants of price elasticity of demand? Explain the determinants. 2. What is the difference between inelastic demand and elastic demand? Provide an example of each from real life. 3. Refer to the graph below: Price 22 20 + 18 +- 16 + 14 B 12 10 + 4 Demand +++ 100 200 300 400 500 600 700 800 900 Buaxtity From the graph above calculate: a. Price elasticity of demand from point A to point B (use the mid-point method). Is it an elastic situation or an inelastic situation? b. Price elasticity of demand from point B to point C (use the mid-point method). Is it an elastic situation or an inelastic situation?
Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic and the annual supply curve is likely Flatter or Steeper to be than the daily supply curve.
Question 2 The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A–H below. Price Quantity Demanded Item Last Month This Month Last Month This Month Large Drink $6.00 $5.50 150 161 Large Popcorn $7.50 $8.00 125 101 Small Drink $2.50 $2.00 75 80 Small Popcorn $5.00 $5.25 45 39 Candy $4.00 $3.50 57 68 Hot Dog $5.00 $5.25 35 36 Movie Ticket $8.00 $9.00 428 300 Calculate the price elasticity of demand for large popcorn. (Show your work.) Is the price elasticity of demand for large popcorn price elastic, inelastic, or unit (unitary)? Briefly…
1. The price elasticity of demand for bread A. is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. B. will be higher if there is a new product that is a close substitute for bread. C. will be higher if consumers consider bread to be a necessity. D. All of the above are correct. E. A and B, only
Which of the following is true about the demand for gasoline? A. It is probably more price elastic in the short run because price will increase by a higher percentage. B. It is probably more price elastic in the long run because it is easier to find substitutes for gasoline in the long run. C. It is probably more price elastic in the short run because it is easier to find substitutes for gasoline in the short run. D. It is probably more price elastic in the long run because price will increase by a higher percentage.

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