Answered: Suppose the price elasticity is -0.4.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price declines from $400 to $300 and, as a result, quantity demanded increases from 1100 to 1400, elasticity of demand is: a) 1.78 b) 0.92 c) 1.12 d) 3.42
None
a) The demand function for a product is p = 60 3-9/15) where q is the number of units and p is the price of one unit. At what price will the demand be 15 units? How many units will be demanded if the price is $41.60?
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?
Suppose the demand for a product is given by D(p)=-8p+227. A) Calculate the elasticity of demand at a price of $18. Elasticity = (Round to three decimal places.) B) At what price do you have unit elasticity? (Round your answer to the nearest penny.) Price = $
The price elasticity of demand for product A is 0.5, and the percentage change in quantity demanded is 1.2. What is the percentage change in price? Round up your answer to 1 (one) decimal place e.g 2.28 = 2.3; Do not include the % sign)
Explain which product each of the countries should specialise in and export. Use the information relating to comparative advantage to support your answer.
Under the cross elasticity of demand between two complementary products___a) None of the above b) If the price of one product decreases, the demand for the other product will decrease. c) If the price of one product decreases, the demand for the other product will increase. d) If the price of one product increases, the demand for the other product will increase.
4x+200 A garden shop determines the demand function q = D(x) = 30x+9 during early summer for tomato plants where q is the number of plants sold per day when the price is x dollars per plant. (a) Find the elasticity. (b) Find the elasticity when x = 2. (c) At $2 per plant, will a small increase in price cause the total revenue to increase or decrease? (a) The elasticity is
b) When the price is $166.10, the demand is (elastic/inelastic) which means that as price the revenue will (increases/decreases) (increase/decrease)
Bristol City Council wants to reduce the amount of alcohol consumed by its citizens. The council hires an economist who calculates that the price elasticity of demand for alcohol is -0.4. If the city council wants to reduce the amount of alcohol consumed by 2%, by how much should they raise the price of alcohol? a) £0.8 b) £5.0 c) 0.8% d) 5.0%
Acme Specialty Products has determined that the demand function for their heated socks is given by: 5 D(p) = 135-p². a. Find E(p), the Elasticity of Demand as a function of price, p. E(p) b. Find the Elasticity of Demand when heated socks are selling at a price of $7. Give result accurate to at least 3 decimal places. E(7) = c. At this price ($7): We would say the demand for heated socks is: Select an answer Based on this, in order to increase revenue we should: [Select an answer d. Use the Elasticity model to determine the price that maximizes revenue. (Round result to 2 decimal places.) P =

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Suppose the price elasticity is -0.4. Then, a 10% increase in price will decrease the quantity demanded by options: A)0.4% B)4% C)25% D)40%