Problem 12: A consumer buys 80 units of agood at price of 5 per unit. If price elasticityof demand is (-)2, at what price will he buy 64units?

Answer: Given, Quantity purchased at $5 per unit = 80 units Price elasticity of demand = -2 The…

Answered: Problem 12: A consumer buys 80 units of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

A negative income elasticity of demand for a commodity indicates that as income falls, the amount of the commod- ity purchased (a) rises, (b) falls, (c) remains unchanged, or (d) any of the above.
At price of 20 per unit, the quantity demanded of a commodity is 300 units. If price falls by 10%, it's quantity demanded rises by 60 units. Calculate its price elasticity.
Suppose the cross-price elasticity of demand between goods X and Y is −3. How much would the price of good Y have to change in order to change the consumption of good X by 30 percent?
according to the income elasticity formula, by how much will popcorn sales increase if average income goes up by 18?(assume the income elasticity of popcorn is 3.29.)
If the price elasticity of a product is -.75 and the demand increases 21% over the year prior, what % change would this have on the price of the product as well as the revenue going to those who produce the product?
M10
5) A certain product has an (own) price elasticity that is elastic, and there is a decrease inthe revenue received. What change in the quantity demanded of a product is necessary to meet theconditions of each situation when there is a 15% increase in the price of that product? Be specific (andsuggest a number).
Someone tells you the "absolute value" of the cross price elasticity of two substitutes like Coke and Pepsi is 2.40. Based on this information, what percent change in the price of Coke will cause the quantity demanded of Pepsi to increase by 3%.
None
Problem 14: A consumer buys 40 units of a good at a price of 3 per unit. When price rises to 4 per unit, he buys 30 units. Calculate price elasticity of demand by expenditure method.
If you know that your consumers have an income elasticity of +2.5, and you expect incomes to go up by 2% next year, what can you expect will happen to demand for your product?
If the absolute value of elasticity of demand for chocolate is 0.64 then the demand for chocolate is considered: a. elastic b. inelastic c. unit elastic d. yummy elastic

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Problem 12: A consumer buys 80 units of a good at price of 5 per unit. If price elasticity of demand is (-)2, at what price will he buy 64 units?