Suppose elasticity of demand for fuel in the Austria is -2.5 and -4.5 in the UK.  How much should the firm charge in the Austria and in the UK? Explain your results.

Q: i. What can you say about the cross-elasticity of demand between petrol and car markets? XED = 0 1>…

A: Answer -

Q: A producer supplies 400 units of a good at 10 per unit price last elasticity of supply is 2 how many…

A: At a price of 10, 400 units are supplied. i.e., P0 = 10 and Q0=400 Now the price increase to 11 per…

Q: If the price elasticity of demnd for milk is -0.80, a 16% increase in sales implies a reduction…

A: Ed or price elasticity= % Change in quantity/% change in price  (-)0.8= 16%/% change in price %…

Q: Worldwide annual sales on smartphones over a two year period were approximately q=-4p+3,020 million…

A: The elasticity is the ratio of the percentage change in the quantity demanded because of the…

Q: Good X can only be produced with a very rare mineral that can only be found in a single mine. Which…

A: Elasticity of supply :-  Elasticity of supply measures the responsiveness of quantity supplied with…

Q: burger platters per month for $7, and the own-price elasticity for this platter has been estimated…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: If an increase in price Of a gel pen from 60 to 80 results to an increase in the quantity supplied…

A: The markets are the place where the buyers, and the sellers of goods, services, and other products…

Q: Assume that the peanut butter demand function is p = 2,000 0.5q, | calculate the elasticity of…

A: Answer: Given, Demand function: p=2,000-0.5qPrice=P300.00At p=300, the quantity will be as given…

Q: If the price elasticity of demand of for gasoline is - 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand has the following formula ed= % change in quantity demanded / % change in…

Q: At $73,a firm can sell 4,585 stereo earphones (3.5 mm for android). At this price, elasticity is…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: What would the gasoline price elasticity of supply mean to UPS or FedEx?

A: The supply elasticity of a commodity provides a quantifiable relationship between its supply and its…

Q: Genovia has experienced exceptional growth in recent years. Its GDP per capita (or Income) has…

A: Given:Initial income=io=$30,000New income=i1=$50,000Initial demand for personal…

Q: Compute for the mid-point elasticity if price increased from 500 to 520 and quantity demanded…

A: Elasticity of demand=(change in quantity/average quantity)/(change in price/average price)Change in…

Q: In a local market the monthly price of internet access decreases from $25 to $15, and the total…

A: Price elasticity of demand refers to the degree of responsiveness to change in quantity demanded due…

Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…

Q: The price elasticity of demand for personal computers is 1.43 and sales for new pc's surge from 900…

A: Alfred Marshall is famous for the seminal work "Principles of Economics." Marshall developed the…

Q: the  demand function for a commodity is Q-500-5P. find out point arc elasticity for fall in price…

A: The price elasticity of demand is a measure of the responsiveness of the quantity demanded due to a…

Q: (a) What is the elasticity E in terms of P ? (b) if the price, p= 180, what should happen to the…

A: Elasticity is the responsiveness of the quantity demanded to the change in price level.Elasticity =…

Q: Elasticity of demand of -0.4 means inelastic demand True/False

A: Elasticity of demand = -0.4  Elasticity of demand measures percentage change in the quantity…

Q: The price of Kenwood blender increased from ȼ150 to ȼ250. Following the increase in price, quantity…

A: Given, Initial price (P2)= ȼ150 New price (P1)= ȼ250 Initial quantity demanded (Qd1)= 500 New…

Q: Is elasticity of demand of 2.5 high or low?

A: Elasticity of demand (Ed) measures the responsiveness of quantity demanded, to a given change in…

Q: What implications does the nature of the supply of agricultural products have for own-price…

A: Supply: It refers to the quantity of a commodity that producer is willing and able to supply at…

Q: P = 450 – 4QD || 1 P = = Qs +25 %3D 4 Calculate demand elasticity at equilibrium: 1/8 O -1/8 8

A: Equilibrium is achieved when  Demand function = Supply function

Q: Explain why the choice between 1, 2, 3, 4, 5, 6, 7, and 8 “units,” or 1000, 2000, 3000, 4000, 5000,…

A: The elasticity of demand accounts for how much the quantity demanded will change as a response to a…

Q: If the Sunset Café reduces their prices by 20%, and the number of customers increases by 40%, what…

A: Elasticity of demand measures how responsive the quantity demanded of a good is to changes in its…

Q: An airline company currently sells a package deal for a $100 return ticket and sells 500 tickets per…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: Star wars coffee mugs are traded in a competitive world market with a price of R180 per cup.…

A: The price elasticity of demand at (Q=10000, P=180) is -0.81The price elasticity of demand is the…

Q: What might you infer about the price elasticity of demand for diesel fuel in the short run? In the…

A: The elasticity is the the responsiveness of percentage change in quantity demanded because of…

Q: The Dixie Chicken currently sells 3,000 burger platters per month for $8, and the own-price…

A: Price elasticity of demand (Ed) depicts the nature of responsiveness of the quantity demanded (Q) of…