The elasticity of demand for a wigit is 2p E(p) = %3D 600 2p where p is the price (in dollars) of one wigit. a. At what price is the elasticity of demand unitary (unit)? Preview b. If the price increases by 3 % from $100 per wigit, what is the new price? Preview c. If the price increases by 3 % from $100 per wigit, what is the approximate percentage change in demar % decrease in demand Preview

The elasticity of demand for a wigit is 2p E(p) = %3D 600 2p where p is the price (in dollars) of one wigit. a. At what price is the elasticity of demand unitary (unit)? Preview b. If the price increases by 3 % from $100 per wigit, what is the new price? Preview c. If the price increases by 3 % from $100 per wigit, what is the approximate percentage change in demar % decrease in demand Preview

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $25 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.) Demand is unit-elastic inelastic elastic C Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 A B D 40,000 80,000 120,000 160,000 200,000 240, Quantity (taxi rides per day)
In April 2021, Amazon charged US$119 per year for Prime. Investment bank RBC Capital Markets carried out a consumer survey. Asked how they would respond if Amazon raised the price of Prime to US$139, 46% said that they would cancel their subscription.a. Based on the survey, calculate the own-price elasticity of demand for Prime. Is the demand price elastic or inelastic?b. How does Amazon’s policy of automatically renewing Prime subscriptions influence the stickiness of subscribers? How does it affect the own-price elasticity of demand for Prime?c. Which behavioral bias of consumers does the automatic renewal policy exploit?d. How does the sunk-cost fallacy affect the price elasticity of demand for products sold on Amazon?
The price elasticity of good x is 2.06, the percentage change in price is 10.33, what is the percentage change in quantity demanded? Select one: a. 0.20 b. -8.27 c. 5.01 d. 21.28
hi! pls answer questions number 3 and number 4 only. thank you Suppose the price of good x has increased from Php5 to Php10 per unit. Using the illustration below, compute the price elasticity of demand using the midpoint elasticity formula. Is the demand for the good elastic, inelastic or unitary elastic? 2. If the price of hamburger increases by 16% and the quantity demanded decreases by 6%, what is the price elasticity of demand? Is it elastic, inelastic or unitary elastic? 3. A 20 percent increase in Ramon’s income brings about a 30 percent decrease in the demand for locally made shoes. What is the income elasticity of demand? Is the good a normal good or an inferior good? Explain briefly your answer. 4. Suppose a person with an income of $20,000 per year buys 10,000 oranges per year at a price of $1 per orange. When the person’s income rises to $25,000, he or she buys 12,000 oranges per year at the same price per orange. What is the implied income elasticity of demand for…
Timmy is selling his toy dinos again. The consumer demand curve for thedinos is given by: x=(50-3p)^2 where p is the price per dino, and x is the demand in weekly sales. a.) Find the Elasticity of Demand function E(p) and evaluate it at the price p = $5.Is the demand elastic, inelastic, or does it have unit elasticity? Explain what this means inyour own words. b.) Find the price Timmy needs to charge for his dinos in order to maximize revenue.(Round your answer to the nearest cent.)
The demand for ceiling fans can be modeled as D(p) = 25.02(0.992) thousand ceiling fans where p is the price (in dollars) of a ceiling fan. (a) Locate the point of unit elasticity. (Round your answers to two decimal places.) The point of elasticity occurs when p = $ and D(p) = thousand ceiling fans. (b) For what prices is demand elastic? For what prices is demand inelastic? (Round your numerical answers to two decimal places.) Demand is inelastic for < p < Demand is elastic for p ? ✓
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Assume that the demand curve is a straight line. If the price per unit of a good rises from $6 to X1, it is expected that monthly demand will fall from X2 units to 1,000,000 units. Give your own appropriate X1 and X2. What is the point price elasticity of demand when the price is $6? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?
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Suppose the demand for a product is given by D (p) = - elasticity of demand at a price of $27. Elasticity what price do you have unit elasticity? (Round your answer to the nearest penny.) Price 5p+227. A) Calculate the == (Round to three decimal places.) B) At = $