The constant price elasticity of demand for cigarettes has been estimated to be-0.5. To reduce smoking by 25%, approximately how much tax needs to be added to a $1 pack? Selected Answer: $1.00
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- The company recently changed the selling price of one of its products from P50.00 to P45.00. The unit sales changed from 2,000 to 2,350. Tax rate is 30%. The product's price elasticity of demand is closest to: a. -0.16 b. -2.12 c. 1.53 d. -1.53 e. -1.97 f. -1.07A company imports a product from China with a cost of $50 per unit. The product is imported with an import tariff of 20% and it is sold for $100 per unit. The total sale revenues for the company were 85.000. If the government increases the import tariff per unit of the product to 30% and the elasticity of demand is 3 find the following: (i) (ii) How many units of this product the company will sale if the price rise the same amount with the import tariff Calculate if the revenues of the company will increase or decrease with the increase of import tariffThe demand function for a Christmas music CD is given by q = 0.75(2500 – p²) where a (measured in units of á hundred) is the quantity demanded per week and p is the unit price in dollars. (a) Evaluate the elasticity at p= 45. E(45) (b) Given the computed elasticity value in part (a), is the Christmas music CD an Elastic or Inelastic item? ? (c) Should the unit price be lowered slightly from p= 45 in order to increase revenue? ? (d) Find the value for E to maximize revenue. E =
- Gerald makes a new brand of shoes that has a unit cost of $75.95 per shoe and a price elasticity of 4.70. What is the contribution - maximizing price for Gerald's shoes? Selected Answer: 62.66 Correct Answer: 96.48 \pm 0.2 i did the formula you recommended, but doesnt eqal the 96.48 as indicated ascorrect asnwerIn the market for cars, the price elasticity of supply is +1.5, and the price elasticity ofdemand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million.(a) Assuming supply and demand are linear, reconstruct and draw the supply and demandcurves. Label the intercepts.(b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after thetax? What is the new equilibrium quantity? Illustrate them on the same graph.(c) How big is the change in consumer surplus, producer surplus, government revenue, anddeadweight loss?Worldwide annual sales of smartphones over a two year period were approximately q=-4p+3020 million phones at a selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ (c) The demand was going down by about _____% per 1% increase in the price at that price level. (d) use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $____ What would’ve been the resulting annual revenue? $____ billion
- If income of a household rises by 10% and demand rises by 40% then income elasticity is equal to 1 (b) 4 (а) 4 (c) 30 percent (d) None of the aboveIf a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then Multiple Choice eBook the demand for the product is elastic in the $6-$5 price range. the demand for the product must have increased. elasticity of demand is 074. the demand for the product is inelastic in the $6-$5 price range. Mc 10Worldwide annual sales of smartphones over two year period were approximately q=-5p+3040 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E=_______ (b) in one of the years the actual selling price was $375 per phone. What was the corresponding price elasticity of demand? E=_______ The demand was going down by about _____% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $_______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places) $_____billion
- Good Own Price elasticity of demand Cigarettes -0.5 Alcohol -1.00 Soda -1.5 If the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax would they have to levy on cigarette consumption? Question 39 options: 20% 30% 40% 50% Question 40 (1 point)When the price of candy bars increased from $0.45 to $0.55, the quantity demanded changed from 21,000 per day to 19,000 per day. In this price range, the price elasticity of demand coefficient (based on the midpoint formula) for candy bars is A) -1. B) -0.18. (C) -2. D -0.5.079333#c374ae27-594f-46ec-8504-285b126cc8b9 - Весса Saveu Question 5 10/11 answered Question 6 If the market price for i-Pads saw an increase of 20% and the elasticity of supply is 0.75, we can expect the change in the quantity sold to be .... (give the answer in a percent but don't put the % sign) Typed numeric answer will be automatically saved. Answers are saved automatically =S Suppose maple syrup and waffles have a cross price elasticity of (-0.75). This would make these goods □