The price of apples at a local market rises from $2.85 to $3.05 per kilo, and as a result the quantity of oranges that households purchase increases from 3,930 to 4,060 kilos per week. The cross-price elasticity is A. -1.48. OB. -0.48. C. 1.48. OD. 0.48. OE. 1.68.

The price of apples at a local market rises from $2.85 to $3.05 per kilo, and as a result the quantity of oranges that households purchase increases from 3,930 to 4,060 kilos per week. The cross-price elasticity is A. -1.48. OB. -0.48. C. 1.48. OD. 0.48. OE. 1.68.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: Part A If the price of Coke increases by 5%, the quantity of Pepsi demanded increases by 2%. Then…

A: In the market, cross-price elasticity of demand explain the connection between the two products…

Q: In the figure, what is the price elasticity of demand at the midpoint between points A and B? Price…

A: Price elasticity of demand is the measurement of the sensitiveness of Quantity demand to change in…

Q: You want to estimate the price elasticity of demand for sandwiches at the restaurant you manage. In…

A: Answer: Given, Price Quantity $6.50 per sandwich 500 sandwiches $6 per sandwich 581…

Q: e price of ice cream inereases from $8 to $10 a gallon, quantity demanded of frozen yogurt increases…

A: Cross price elasticity of demand depicts how much consumer responds with the change in price of…

Q: Consioer ihs folowing demand sch Price Quantity 536 16 $30 24 $12 60 80 Complete the following table…

A: Elasticity of demand is an important variation on the concept of demand. ... An elastic demand is…

Q: When the percentage change in the quantity demanded exceeds the percentage change in price, then…

A: Quantity demanded refers to the general quantity of associate item or service that buyers demand…

Q: Suppose that the market for frozen orange juice is in equilibrium at a price of $0.80 per can and a…

A: Price elasticity of demand describes how sensitive or reactive the quantity demanded of a good or…

Q: Use the information in the table below to compute Susan's income elasticity of demand for business…

A: Income elasticity of demand measures the responsiveness of quantity demanded to change in income.…

Q: Suppose Norman Bates, the owner-manager of a small local hotel, projects the following demand for…

A: Elasticity of demand refers to the proportionate change in quantity demanded with respect to the…

Q: The price elasticity of toy cars that you sell is-3.00 [negative 3]: you currently charge a price of…

A: Price elasticity of demand refers to the percentage change in the quantity demanded of a goods or…

Q: Genovia has experienced exceptional growth in recent years. Its GDP per capita (or Income) has…

A: Given:Initial income=io=$30,000New income=i1=$50,000Initial demand for personal…

Q: Last month, an appliance store sold 82 refrigerators at $779 each. This month, the floor manager has…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Celine runs a sporting goods store and knows that the price elasticity of demand for her sport…

A: When there is a variation in the level of demand due to a change in the level of price of a product…

Q: able 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. If an increase…

A: Price elasticity of demand is an estimation of the adjustment of utilization of an item according to…

Q: A pizza restaurant raises the price of their pizza by 10%. As a result, they witness a 20% decrease…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: A Harvard economist estimates that a doubling of enforcement efforts to block marijuana imports…

A: Microeconomics theory describes that the price elasticity of demand (PED) is defined as the degree…

Q: For each of the regions listed in the following table, use the midpoint method to identify if the…

A: The Elasticity of demand measures the degree of responsiveness of demand to change in price level.…

Q: Suppose the price of a chicken sandwich increased from $2 to $4 and the quantity demanded fell by…

A: It measures the responsiveness or degree of a quantity demanded to change as the price changes.…

Q: If you learn that the cross price elasticity on movies and restaurants is -0.75 then you can…

A: The given two goods movies and restaurants have a negative cross elasticity of demand of -0.75. A…

Q: Suppose the own price elasticity of demand for good X is –3, its income elasticity is -3, its…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: the endpoint method to compute the price elasticity on D1. 10 55 D, D2 80 90 100 m point A to point…

A: Use the endpoint method to compute the price elasticity on D1.

Q: The price elasticity of demand for a product is estimated to be -2.3. At the initial price of $20,…

A: Elasticity of demand measures the quantitative change in the demand in response to change in the…

Q: A 50% increase in the price of oak wood has increased the quantity demanded of pine wood by 10%.…

A: Given The percentage change in the price of oak wood is 50 due to this, the percentage change in…

Q: It is a rainy day in the village and we are selling Umbrellas. Here is the following data we have on…

A: Price Elasticity of demand measures the sensitivity of quantity demanded to change in price.…

Q: Suppose the price for tennis shirts increases by 10%, demand decreases by 20%. For tennis shirts,…

A: The Ed( elasticity of demand) demonstrates the degree of responsiveness in quantity demanded of the…

Q: China is the largest wheat producer in the world. Covid-19 has played havoc with the global wheat…

A: Price elasticity of demand =% change in quantity% change in price

Q: The price elasticity of good x is 3.96, the percentage change in price is 11.5, what is the…

A: Price elasticity of good x is 3.96. The percentage change in price is 11.5

Q: Suppose that quantity demand rises by 10% as a result of a 5% decrease in price. The price…

A: The price elasticity of demand (ep) of a good expresses the degree of responsiveness of demand owing…

Q: 2. With lower fuel costs, an airline lowered its average traveling cost from $1.50 to $1 per…

A: Given : change in price from $1.50 to $1 per passenger mile. Change in number of passengers : 400…

Q: 5) A certain product has an (own) price elasticity that is elastic, and there is a decrease in the…

A: Price elasticity of demand measures the percentage change in quantity due to percentage change in…

Q: 8. When the price of a bran muffin is $2.00, the quantity demanded is 90 bran muffins per day. When…

A: Elasticity of demand is an important economic concept which is used to measure the degree of…

Q: Round up the answers to the nearest hundredths. Suppose that business travelers and vacationers…

A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…

Q: Suppose the demand for a Nintendo console is P = 600 - 0.05Q, where P represents the price of a…

A: In this question we are given with demand for nintendo console as P= 600-0.05Q, Price "P" is $300,…

Q: The quantity demanded of salt decreases when the price of pepper increases. This is an example of…

A: Consider the following definitions Own price elaticity: when the quantity demanded of salt change…

Q: 11.) In the market for cars, the price elasticity of supply is +1.5, and the price elasticity of…

A: Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…

Q: 18.)Which of the following price elasticities of demand would be considered inelastic? а.) 3 b.) 2…

A: There is information that in communist kind of government, there is supposed to be complete control…

Q: Suppose that a 20% increase in the price of gasoline causes a 30% increase in the sale of Tesla cars…

A: Cross price elasticity refers that change in price of one good will affect or change in demand of…

Q: A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease…

A: Price elasticity of demand: It refers to the change in the price of goods and services which in…

Q: When the price of butter increases from $1 to $2, the quantity demand of margarine increases from 6…

A: Cross price elasticity is the percentage change in quantity demanded of one good due to percentage…

Q: 5. Johnny Ringlet at SkateNation staged a President's Day promotion at his Roller Skating Rink last…

A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…

Q: Suppose that business travelers and vacationers have the following demand for airline tickets from…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: If the price of product X increases from $10 to $12, the quantity demanded for gasoline (X) will…

A: Price of X Quantity of X Quantity of Y Quantity of Z 10 100 90 50 12 82 63 76

Question

The price of apples at a local market rises from $2.85 to $3.05 per kilo, and as a result the quantity of oranges that
households purchase increases from 3,930 to 4,060 kilos per week. The cross-price elasticity is
OA. -1.48.
B. -0.48.
C. 1.48.
D. 0.48.
E.
1.68.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Describe the relevance of elasticity

VIEW

Step 2: Calculate the cross price elasticity between apples and oranges

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The accompanying table shows the price and monthly demand for barrels of gosum berries in Gondwanaland. Price of gosum berries per barrel Native demand for gosum berries per month $100 0 $90 100 $80 200 $70 300 $60 400 $50 500 $40 600 $30 700 $20 800 $10 900 $0 1,000 A) Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $10 to $20. What kind of elasticity is this value that you computed for the price elasticity of demand, and what does it mean for how demand will change based on a change in price within this price range? (Enter your response here.) B) Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $70 to $80. What kind of elasticity is this value that you computed for the price elasticity of demand, and what does it…
Suppose that the elasticity of demand for gasoline is -0.20. If world gasoline supplies decrease by 10%, then the price of gasoline will increase by how much? a. 20% Ob. 10% Ⓒc. 50% O d.5%
Price (dollars per dozen) 30 50 Quantity supplied (dozens per day) 8 12 The table gives some data on the supply of roses in a small town. When the price rises from $15 a dozen to $25 a dozen, the elasticity of supply is O 0.80. O 0.20 O 1.25. O 5.00.
Suppose that quantity demand falls by 2 as a result of a 14% increase in price. The price elasticity of demand for this good is O inelastic and equal to 0.10 O clastic and equal to 10 O inelastic and equal to 10 O elastic and equal to 0.10
11. Calculating %age Exx *3* When the price of product "X" increases 15 percent (+15%), the quantity demanded of "X" decreases 12 percent (-12%). The price elasticity of demand for "X" is: O "-1.25" and the demand for "X" is "relatively inelastic." "-1.25" and the demand for "X" is "relatively elastic." O "-1.25" and "X" is a "normal" good. O "-0.80" and the demand for "X" is "relatively elastic." O "-0.80" and the demand for "X" is "relatively inelastic." Save & Continue Continue without saving
Suppose that the elasticity of supply is 1.60 and the price increases by 5%. We will predict a percent increase in the quantity supplied of: 8% 6% O 3.1% 12%
Price falls from $8.50 to $7.75, and the quantity demanded rises from 900 units to 970 units. What is the approximate coefficient of price elasticity of demand (Ed) between these two prices? 0.64 1.00 1.23 O 1.44 O 0.81
O Quiz Elasticity H X ure.com/courses/26987/quizzes/115065/take Suppose the price elasticity of demand for beer is En = 0.23. What would happen to the amount of beer people would buy if the price of beer increased by 10%? (hint: remember the relationship between price and quantity demanded) O People would buy 23% less beer. O People would buy 2.3% less beer. O People would buy 23% more beer. O People would buy 2.3% more beer. Question 4 1 pts The basic formula for price elasticity of demand is: = % change in Quantity demanded % change in Price O True OFalse
Your firm receives revenue of $40MM per year from Product A and $90MM per year from Product B. The own- price elasticity of demand for Product A is -1.5. The cross-price elasticity of demand between Product A and Product B is -1.8. Suppose you increase the price of Product A by two percent: a. How much will Product A’s revenue change? b. How much will Product B’s revenue change?
The price elasticity of demand for a good is calculated as 1.36. From this elasticityco-efficient, we can tell that:(2)(1) The good is not a necessity;(2) The good has many close substitutes;(3) Producers can increase total revenue by decreasing the price of the good;(4) Statements 1, 2 and 3 are all correct.
O the producer should raise the price, but not as high as it was, to increase total revenue. Question 2 3 pts Assume that the price elasticity of demand is 0.20. Given a 10 percent increase in price, we will see a 2 percent decrease in the quantity demanded. O2 percent increase in the quantity demanded. O20 percent decrease in the quantity demanded. O 20 percent increase in the quantity demanded. Question 3 3 pts
The price of chicken breast rises from $3.50 per pound to $4.25 per pound. In response to this price change, the quantity demanded for chicken breast falls by 30%. Based on the midpoint method, what is the absolute value of the price elasticity of demand for chicken breast? a. 0.83 b. –0.83 c. 1.55 d. –1.55