Suppose the demand equation is: Q = 80 - 1.25p. What is the price elasticity of demand if the price is $40 per unit and output is 30 units? The price elasticity of demand is . (Enter a numeric response using a real number rounded to two decimal places.)
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- What does a price elasticity of demand of 0.39 mean?Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?(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?
- 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?In 3- 5 sentences, state the importance of the learning the elasticity of demand and supplyThese questions require application of economic theory relating to elasticity of demand andsupply. All calculations must be shown in full. Answer ALL the questions.Q.3.1 A store that sells maize meal discovers that when the price of 1kg maize meal IsR24 per kilogram, the quantity demanded is 306 kgs per week. When the pricedecreases to R21 per kg, then the sales increase to 340 kgs per week. Use thisinformation to answer questions Q.3.1.1 and Q.3.1.2 below.Q.3.1.1 Determine the price elasticity of maize meal using the Arc method. (5)Q.3.1.2 Discuss the relationship between the price elasticity of maize mealand the total revenue the store received from the sales. Advise thestore on an appropriate pricing strategy.(7)Q.3.2 The store selling maize meal makes a further discovery, when the price of ricechanges from R30 per kg to R26 per kg, then the quantity of rice demandeddecreases from 1360 kg per month to 1238 kg per month. Use this informationto answer Q.3.2.1 and Q.3.2.2 below.Q.3.2.1…
- Give only typing answer with explanation and conclusion The elasticity of the house value with respect to the concentration level of PM10 is -9.3. Then a 11% decrease in the concentrations level of PM10 will change the house value by how much? (note: if the house value increases input a positive number if the house value decreases input a negative number)ll SMART LTE VPN 7:28 AM © 44% a docs.google.com Refer to the graph below. Between the two points indicated on this demand curve, * Price PF |10% Po 10% Q, Qo Quantity Changes in price and quantity are identical. the value of elasticity equals one. the elasticity value is the same as the value of the slope of the line. PO All of the above. 2Q46 China is the largest wheat producer in the world. Covid-19 has played havoc with the global wheat market. Suppose the price elasticity of demand for Chinese wheat flour is 0.20. If the price of Chinese wheat flour falls by 10 percent, we expect the the quantity demanded of Chinese wheat flour will increase by: Multiple Choice 20 percent and total expenditures on Chinese wheat flour will fall. more than the price of Chinese wheat bread. 20 percent and total expenditures on Chinese wheat flour will rise. 2 percent and total expenditures on Chinese wheat flour will rise. 2 percent and total expenditures on Chinese wheat flour bread will fall.
- The demand equation for a particular candy bar is px + x + 20p = 3000where 1000x candy bars are demanded per week when p cents is the price per bar. If the current price of the candy is 49 cents per bar and the price per bar is increasing at the rate of 0.2 cent each week, find the rate of change in the demand.Need number 4 and 5 answered Elasticity: What is elasticity? Elasticity refers to the concept that provide information about the sensitivity or responsiveness of one variable to another. What is Price Elasticity of Demand? Price elasticity of demand is the responsiveness of consumers in term of quantity demanded with respect to the price change. It explains that how much quantity demanded changes with the change in the price by 1percent. What is the formula that we will use to calculate it? The formula to calculate price elasticity of demand would be: =Percentage change in quantity demanded/percentage change in price After calculating the Coefficient of Price Elasticity of Demand, what are the rules we use to characterize that price range? (i.e., What importance does the number one play?) What is the total revenue test?Assume that a retailer sells 1000 six packs of Pepsi per day at at $3./6pk. You, as an economic analysis , estimate that the cross price elastcity between pepsi and coca cola is 0.4. If the retailer raises the price of coca cola by 10%, how would sales of pepsi be affected, ceteris paribus, why