Answered: of demand between palm oil and soy

Business

Economics

of demand between palm oil and soy

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

See similar textbooks

Related questions

Q: trade. What was it: GATT NAFTA EFTA TPP

A: International trade is the trading of labor and products among nations. Trading internationally offe...

Q: Refer to the information provided in Table 9.4 below to answer the questions that follow. Table 9.4 ...

A: We have given consumption function: C = 100 + 0.9Yd Differentiate C w.r.t Yd to get MPC MPC = dC / d...

Q: An asset is purchased for 108882. It is estimated life is 10 years, after which it will be sold for ...

A: Under the SYD method, the depreciation rate percentage for each year is calculated as the number of ...

Q: The engineering team at Manuel's Manufacturing. Inc., is planning to purchase an enterprise resource...

Q: uestion 11 If i 2%, the value of X in the following balanced CFD is nearest to: 600 500 300 200 100 ...

A: Cash flow means company cash comes out or comes in the company. It means as cash flow into the busin...

Q: In the 2006 MLB baseball season, the Chicago Cubs finished last in their division, although they mai...

A: Ticket prices would rise as per the demand of the consumers, if the demand is not in the market, the...

Q: Why is the Philippine Bill of Rights important? Give 5 examples of instances when you can use it to ...

A: The Philippine Bill of Rights The constitution is the basic written principles and rules according t...

Q: 1 Question 6: What matters for the success of the Ford's Model T? What did Ford do to take the posit...

A: What matters for the success of the Ford's Model T? In the 1999 Car of the Century competition, the ...

Q: bidding. Two bids wer rs. The first bid off- for 5 years, each pa ng of each year. The se 0,000 the ...

A: Present worth is the possibility that communicates a proportion of money today is worth more than ...

Q: Using the model for a closed economy, if the nominal wage is $40 and we have a Cobb-Douglas producti...

A: Cobb Douglas production function: Y = KαL1-α α=0.2 (Given) => Y = K0.2L1-0.2 => Y=K0.2L0.8 ---...

Q: A mobile provider has two types of deals. Currently the provider has 1 million customers, 65% of tho...

Q: Region A (the purple shaded area) represents the total producer surplus when the market price is $ ,...

A: Region A(the purple shaded area) represents the total producer surplus when the market price is $175...

Q: Explain why a firm might want to produce its good even after diminishing marginal returns have set i...

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If you...

Q: If MR (marginal revenue) is less than MC (marginal cost), then the firm sould O a. decrease producti...

A: The economics as a study is based upon the idea that resources which are present with the economies ...

Q: Some economists compare schooling and earnings among identical twins to estimate the causal effect o...

A: Answer:-3) a) It's crucial to remember that high school and college graduates are individuals in th...

Q: The following table contains revenue and cost information for a perfectly compet firm producing comp...

A: given total revenue and variable cost Fixed cost remains the same Total cost = fixed cost + variabl...

Q: 1 Hypothetical Case 1 The following equations describe the long-run situation for prices and costs, ...

Q: Consider the graph below where there are two pollution-abatement technologies (Old and New) availabl...

A: The total abatement cost refers to the cost of reducing environmental damages such as pollution. It ...

Q: Explain how “Mano Dura” criminalized the poverty in Puerto Rico

A: In February 1993, war was declared in Puerto law. in a very special legislative address, ...

Q: i. Draw a Demand and Supply diagram for Coffee Beans based on the demand and supply schedule below. ...

A: Equilibrium in the market is reached where quantity demanded equals quantity supplied, that is at th...

Q: 8. "When a policy creates winners and losers, the Pareto (unanimity) principle itself is highly appl...

A: Introduction Q 8 Its answer is true When a policy for winner and loser has created then Pareto princ...

Q: Mechanix is a machine shop and a paper manufacturing plant gave it a P100,000.00 budget to fabricate...

A: The number of steel type that is bascially manufactured by mechanix is given by the: Budget = (weigh...

Q: 2. If the production function is given by Y-A(K¿L)°.5 where Y is the output, A is the technology, L ...

A: Understanding the Solow growth model is crucial. A growth model aids in forecasting the state of eco...

Q: There are three factors of production, capital, K, skilled labour L; and unskilled labour Ly. Which ...

A: a production function gives the technological relation between quantities of physical inputs and qu...

Q: assume that the price levels for a product is :[11,9,7,4,2], then create a table showing the Qd and ...

A: In economics, an excess supply, economic surplus market surplus or briefly supply is a situation in ...

Q: Consider the graph below where there are two pollution-abatement technologies (Old and New) availabl...

A: The graph in the question represents the two different curves of marginal abatement. The firm would...

Q: Given demand function of the orange market P = 133 - 4QD. You sell oranges at the price TK83. What ...

A: Total Revenue = P*QD Where QD is calculated at a given prices.

Q: Identify the term being referred to: A certificate of indebtedness with fixed interest rate and mat...

A: Corporate bond is the term being referred to in the question.

Q: Will an unregulated monopoly end up with normal or with economics profits? Why or why not?

A: A monopoly is a market structure in which there is a sole seller and has control over the market st...

Q: You are given the following long-run cost function: TC = 200Q - 25Q2 + 1.5Q3 What level of Q will ec...

A: Here the firm's total cost=TC = 200Q - 25Q2 + 1.5Q3 here the total fixed cost-TFC=0 (since this is a...

Q: 1. The individual faces a budget constraint in period 1 of Pīc1+81 2 budget constraint of P,C2 = (1+...

A: A consumer's utility curve or function defines the ideal combination of expenditures that maximises ...

Q: P Question 1 Anand has $100 to spend on apples and/or avocados. Suppose you have drawn his budget li...

A: Correct answer "none of the above".

Q: Output per worker Country ... Australia Brazil 200 Sleds Clarinets 300 2 Good Suppose that Australia...

A: Absolute advantage and comparative advantage are two important concepts in economics and internation...

Q: 4. The market for Woozle used to be perfectly competitive, but then Woozlesoft Inc. monopolized prod...

Q: In the current period, a consumer gets an endowmenty and pays lump-sum tax t. In the future period, ...

A: Above question pertains to intertemporal choice problem in which consumer optimizes its consumption ...

Q: The game to the right is called the dating game. It's origins go back to the early 1950s. Player 2 S...

A: This is an example of a game involving two players who wish to attend a concert by Bach and Stravins...

Q: e. Expanded use of online payments reduces the amount of money people want to hold. The central bank...

A: Consider the below points: *Is curve shows the inverse relationship between the interest rate and ou...

Q: A massive network of seawalls is possibly going to be constructed right in the middle of Miami Beach...

A: Concepts: Contingent valuation: In this method, direct surveys are conducted to determine their wil...

Q: In a study, by economist Paul Gertler and Jacques van der Gaag, it was found that the price elastici...

A: Given: The elasticity of demand for poor households=0.67 wealthy households=0.29 Increase in the pri...

Q: From the previous graph, you can tell that Teresa is willing to pay s for her 8th slice of cheesecak...

A: The consumer surplus is the difference between the price the consumer is willing to pay and the pric...

Q: If a $1000 increase in disposable income causes consumer spending to rise by $700, what is the margi...

A: Here, given information is: Change in disposable income (∆Y): $1,000 Change in consumer spending (∆...

Q: n 2015, a producer of wine purchased ingredients for $1 million, labor for $0.5 million, and equipme...

A: Given: Purchase of ingredients=$1 million Labor=$0.5 million Equipment=$0.5 million

Q: Which of the following is not included in the objectives of tariffs? To promote indigenous research...

A: A duty or tax that is being paid for a certain type of exports and imports is known as tariffs.

Q: Suppose that a cookie factory in a competitive market fices the following revenues and costs: Quanti...

A: 1st part answer: Figure attached below show the profits computed at each level of quantity by deduct...

Q: A small open economy is described by the following equations: C = 50+0.75(Y-T), I = 200 -20r, NX = 2...

A: IS–LM model, or Hicks–Hansen model, is a two-dimensional macroeconomic tool that shows the relations...

Q: Benefits of government regulating banks.

A: Bank regulation is basically a kind of govt regulation that, among other things, sets certain rules,...

Q: Using the supply and demand graph below, identify the areas of consumer surplus and producer surplus...

A: Answer: Consumer surplus: consumer surplus refers to the area between the equilibrium price and the ...

Q: 2. Assume a competitive firm with a cost function c(y) = y? + f. Prove that producer's surplus equal...

A: A cost function is a formula used to predict the cost that will be experienced at a certain activity...

Q: In what ways does Kevin's demand for up-front royalty payments affect Proof's ability to grow organi...

A: Kevin's demand for upfront and honest royalties, which is impacting the proof's capacity to grow spo...

Question

The short run elasticity of demand between palm oil and soybean oil is 0.103. The quantity demanded for palm oil is 10 million metric tonnes at the current price USD 1480 per metric ton of soybean oil. Calculate the quantity demanded of palm oil if the price per metric ton of soybean oil decreases to USD 1400.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
Prove that price elasticity of demand is not the same as the slope of a demand curve.
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?
Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less popcorn. What does this tell you about the price elasticity of demand? What will happen to total revenue as a result of the price increase?