Suppose the price for an Uber ride in Austin, TX decreases from $15 to $12 causing the quantity of rides demanded to increase from 1000 to 1600. Using the midpoint method, the price elasticity of demand for an Uber ride is ________. Group of answer choices: -0.50 -2.08 -3.0
Q: Suppose that at a price of ₱1,500 per month, there are 30,000 subscribers to cable television in…
A: please find the answer below.
Q: 1.
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A: We use standard midpoint formula of elasticity. Elasticity = [(Q2 - Q1) / {(Q2 + Q1) / 2}] / [(P2 -…
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Q: elastic
A: Elasticity of supply is given by the following formulae.
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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
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A: price elasticity of demand = percentage change in quantity demanded / percentage change in price
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A: Price Elasticity of demand= percentage change in quantity demandedpercentage change in price…
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A: The answer is given below
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A:
Q: $10 $5 A D, D2 80 90 100 The percent change in price is:
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A: Given: P=200-2Q It is given that P is 30. So, 30=200-2Q 2Q=170 Q=85 Here, P=200-2Q2Q=200-PQ=100-P2
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A: The elasticity of supply is the responsiveness in quantity supply due to changes in price.
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A: The law of demand's core notion is price elasticity of demand (PED). It is an economic measure of…
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- Suppose Government of Pakistan wants to put a curb on public smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs Rs.175 and the government wants to reduce smoking by 30 percent, by how much should it increase the price? Kindly type only percentage change in the box given below. Do not use percentage sign in the box. Also, do not use any plus or minus sign in the box.Investigating the demand for textile in a country X, a researcher observed that the demand for textiles tend to rise by 1.5 per cent with one per cent decrease in the prices of textiles; with the rise in one per cent of per capita GDP, the demand for textiles rise by 0.45 per cent and when food prices increased by one per cent, the demand for textiles contracts by 0.93 per cent. (a) Identify the type of demand elasticities in this case and define them. (b) Which type of elasticity the textile mills should consider significant for business development? (c) How much rise in sales is expected during a festival season by offering 20 per cent discount by textile mills showrooms?Suppose the average age of Stanford Alumni increased at the same time the smaller stadium was built and the income elasticity of ticket sales is .5 Group of answer choices Tickets are an inferior good. If income increases with age, it is more likely the smaller stadium will increase total revenue because any increase in ticket revenue from the increase in prices will be reinforced by an increase in ticket sales from the higher income of Stanford Alumni. If income increases with age, it is less likely the smaller stadium will increase total revenue because any increase in ticket revenue from the increase in prices will be offset by a decrease in ticket sales from the higher income of Stanford Alumni.
- (a) Show that the function Q = a/P* , where a and c are constants, has a constant elasticity of demand: ɛg = -c. (b) (i) Determine the elasticity of demand for train journeys on a given route when the demand function is Q = 1200/P|.2, where Q is the number of fares in thousands. (ii) If the fare increases by 5%, use elasticity to calculate the percentage change in demand. (iii) If the fare decreases by 5%, use elasticity to calculate the percentage change in demand.Transport economists Lasse Fridstrøm and Vegard Østli studied the demand for cars in Norway between 2002 and 2016. Regarding gasoline-powered cars, the own-price elasticity was −1.094, and the cross-price elasticities with respect to the prices of gasoline, electricity, and electric cars were −0.71, 0.06, and 0.19 respectively. As for electric cars, the own-price elasticity was −0.99, and the cross-price elasticities with respect to the prices of electricity, gasoline, and gasoline-powered cars were −0.18, 0.38, and 0.35 respectively.a. Referring to the above data, discuss whether gasoline cars and electricity are substitutes or complements.b. Electric cars are more expensive than gasoline cars. Compare the incomes of people who buy electric cars vis-à-vis those who buy gasoline cars.c. Considering the buyers’ incomes, explain why the demand for electric cars is less price elastic than the demand for gasoline cars.d. Why would the short-run demand for gasoline cars be less elastic with…Exercise : Following an increase in it's price, from 10$ to 12$, the demand for a good falls from 10500 to8100 units.What elasticity of demand would you estimate from these data? Calculate its value, first by using the general formula (for discrete changes), then by assuming a constantconstant elasticity of demand (log formula).Calculate the demand for p=9 (note q9 the quantity for p=9), using the general formula then in log of the elasticity calculated in Now, Knowing the value of the direct price elasticity of demand calculated previously, assuming constant costs andcosts and rivals not responding to your price cut, would you have recommended the price cut from 10 to 9?price cut from 10 to 9 ?
- Suppose cigarettes could be purchased for less in neighboring states because cigarette taxes are lower in those states. Group of answer choices Would effect the price elasticity of demand for cigarettes in New York more if the difference in taxes was greater. This would make the price elasticity of demand in New York higher. This would make the price elasticity of demand in New York lower. Would effect the price elasticity of demand for cigarettes in New York less if the difference in taxes was greater.The following graph illustrates the market for almonds. It plots the monthly supply of almonds and the monthly demand for almonds. Suppose new gathering technology is invented, allowing growers to produce more crops using the same amount of resources. Show the effect this shock has on the market for almonds by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 20 16 0 0 10 20 30 Supply Demand QUANTITY (Thousands of tons) 40 50 Demand SupplyThe underground fare in your town has just been increased from a current level of $1.00 to $1.20 per ride. As a result, a 10 per cent decline in the number of passengers was noticed. a) Compute the price elasticity of demand for underground rides. Answer (enter a numerical value): b) Would you expect an increase or a decrease in revenues resulting from this price change? Answer (select): c) If the fare was reduced back to $1.00, what impact would you expect on the number of passengers? Answer (select):
- 3. Garibaldi Provincial Park is located between Squamish and Whistler. A travel cost survey was completed to estimate demand for trips to the park. Bascd on the survey an estimated demand function was derived to represent an average household: P= 200 – 50Q. This is demand per year per household. If there are approximately 2000 households with a travel cost of $150, 3000 households with a travel cost of $100, and 4000 households with a travel cost of $50, what is the total consumer surplus per year from the park?John Stain estimates that the demand curve for his PaneMaster insulated windows is given by Currently, John is charging $150 per window, including installation. John is considering a sale. Find the price elasticity of demand for PaneMaster Windows and comment on the advisability of a sale. a) n = -0.67 so the consequences of a sale cannot be determined b) n = -0.67, so a sale would increase profits c) n = -6.00, so the consequences of a sale cannot be determined d) n = -6.00, so a sale would increase profits Q 350- 2PA manufacturer sells two products, A and B and had raised the prices of the two products recently to cover the higher production costs. The price and quantity for each product before and after the price change is given in the table below. Product A B Initial Price $250 $600 Initial Quantity demanded 28050 New Price $300 $750 New Quantity demanded 20045 Calculate the price elasticity of demand for both products using the midpoint method. Comment on their elasticities and explain two (2) possible reasons why they are different. What should the manufacturer do to the prices of the two products if the objective is to earn more revenue?
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