Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. $4 Price 10 8 6 4 2 B -3.0 O -30. O-300 E 1 1 1 2 3 4 5 Number of hamburgers Figure 5.2 Q Refer to Figure 5.2. If the price of a hamburger increases from $8 to $10, the price elasticity of demand equals. -0.33 Use the midpoint formula.

Refer to the information provided in Figure 5.2 below to answer the question(s) that follow. $4 Price 10 8 6 4 2 B -3.0 O -30. O-300 E 1 1 1 2 3 4 5 Number of hamburgers Figure 5.2 Q Refer to Figure 5.2. If the price of a hamburger increases from $8 to $10, the price elasticity of demand equals. -0.33 Use the midpoint formula.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Given the demand function: Qd = 520 – 40P Solve for the price elasticity of demand between P = 8 and P = 12. Determine whether demand is price elastic, price inelastic or unit elastic. 2. Suppose that boys and girls have the following demand for burgers. Price Quantity Demanded (boys) Quantity Demanded (girls) $400 4,000 1,600 $500 3,800 1,200 Solve for the price elasticity of demand of the boys and girls. Determine whether demand is price elastic, price inelastic or unit elastic.
Question 12 (Figure: The Market for Ford Mustangs) Price (thousands) P, 30 P₂ 20 A) .60 B .40 Quantity (thousands) The price elasticity of demand for Ford Mustangs is: .67 1.67 5 Q₁- Question 12 10 Q₂ D
5. The demand equation for a good is given by the equation: О, 3 520 — 20Р, + 0.6Y + 2.9Р, a. Find the price, income and cross price elasticity of demand when P, = 10, Y = Р, 3 21 700 and b. Discuss the effect on demand if there were a 20% increase in price c. Discuss the effect on demand if there were a 50% decrease in income
15. Use the graph to answer the question that follows. What is the price elasticity of demand when price increases from $2 to $4? 0.2 0.5 2 3 5
5. The demand equation for a good is given by the equation: Q, = 520 – 20P, + 0.6Y + 2.9P, a. Find the price, income and cross price elasticity of demand when P, = 10, Y = = 21 700 and b. Discuss the effect on demand if there were a 20% increase in price c. Discuss the effect on demand if there were a 50% decrease in income
Price (dollars per unit) 92 91 90 68 88 D 5 6 7 Quantity (units per day) 2 4 The figure shows a demand curve. Using the midpoint formula, the elasticity of demand moving from point A to point Bequals A) 1.00. B) 0.033. C) 2.00. D) 30
4) Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager.
Question 8
In Figure 5-2, what is the income elasticity of demand for automobiles (using the point elasticity formula)? a. 1/2 b. −1/2 c. 2 d. −2 e. Approaching zero
5.if the price decreases from RM 15 too RM 10, the quantity demanded rises from 40 to 80. Calculate the price of elasticity of demand by using midpoints?
Q3 price Quantity demanded A 60 100 B 50 200 C 40 300 D 30 40 0 35 Quantity supplied 50 45 40 Use the information in the table above: a- Calculate the price elasticity of demand when the price changed from 50 to 60. b- Calculate the price elasticity of supply when the price changed from 40 to 30.