The tomato crop is ruined by heavy rains. As a result, the price rises from $4 to $6 a box and the quantity demanded decreases from 1,000 to 600 boxes a week. Over this price range, what is the price elasticity of demand?   The income elasticity for Burberry watches is 1.5. What would be the change in quantity demanded of Burberry watches if income quadrupled?   A 2 percent increase in the price of milk causes a 4 percent reduction in the quantity demanded of chocolate syrup. What is the cross-price elasticity of demand for chocolate syrup with respect to the price of milk?  Are the two goods complements or substitutes?

Q: Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the…

A: Initial price of envelops = $3 a box Final price of envelops = $3.75 a box proportionate change in…

Q: explain with the help of a diagram how new technology might change the elasticity of supply of new…

A: The effect of the technology on the elasticity can be explained as follows :  Elasticity of Supply :…

Q: Calculate Price Elasticity of Demand for pens when the price rises from $4 to $6 a pen and quantity…

A: Price Elasticity of Demand is showing the sensitivity of changing quantity demanded to the changing…

Q: Jimmy's income is $1200 per month. At a price of $7 per sandwich, Jimmy buys 7 sandwiches. Jimmy's…

A: The demand for a good, or a service is described as the total amount of that good, or service which…

Q: How does the price elasticity of demand change if you move along the demand schedule from $10 to $8…

A: The price elasticity of demand can be calculated as follows: When price falls from $10 to $8, the…

Q: Suppose the cross-price elasticity of tea with respect to the price of coffee is 0.6, and the price…

A: Cross elasticity of demand is defined as the measurement of the relative change in quantity demanded…

Q: If there is a decrease in income to consumers, what will happen to the sale of a product?  Known…

A: If there is a decrease in income to consumers, the effect on demand for a product can be calculated…

Q: What are the three factors affecting demand elasticity and explain how each makes the demand for…

A: The elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: At a price of $8, Primo’s sold 20 cheese pizzas. When Primo’s  raised the price to $10, the quantity…

A: The ability to determine whether a company's goods or services are elastic is critical to the…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50 he…

A: Elasticity of demand = % change in quantity demanded / % change in price

Q: Explain the difference between income elasticity, demand elasticity, and cross-price elasticity.

A: Elasticity is the measure of responsiveness in change in quantity due to change in income or price…

Q: 1) The price elasticity of supply for phones is 0.8. If price rises by 2%, what will happen to the…

A: ‘Price elasticity of supply’ refers to the percentage(%) change in quantity(Q) supplied in relation…

Q: hat impact would Hurricane Irma have on the price of oranges?

A: Price elasticity is defined as the measure of how price responses to the unit quantity demanded.…

Q: Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 percent, what…

A: Given data: Price elasticity of demand for bananas is 4 The rise in Price of bananas is 5%

Q: Jenny's weekly income increases from $500 to $650. As a result, she goes out for dinner one day a…

A: The income elasticity of demand (Ey) is a measure of how sensitive the quantity demanded of a good…

Q: Is Price Elasticity of Demand always Negative? Give example when price elasticity of demand becomes…

A: "Demand in economics describes a relationship between different prices of a commodity and units of…

Q: Elasticity of supply depends on the ease of changing the amount of an item supplied. 8. Anton has 4…

A: Elasticity Elasticity is an term used in economics that describes how the aggregate quantity…

Q: What does the elasticity of demand for luxuries tend to be? Ogreater than 1 greater than 0 but less…

A: Elasticity of demand refers to the percentage change in quantity demanded of a commodity with…

Q: Describe the concept of price elasticity?

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: ast week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today,…

A: Last week price= php 150 No. of boxes=10 Today's price= php 175 No. of boxes= 8

Q: If Starbucks’s marketing department estimates the income elasticity of demand for its coffee to be…

A: The quantity of coffee star bucks expects to sell can be calculated by Income elasticity of demand…

Q: Grilled cheese sandwiches are $4, and the quantity demanded is 60. When the price falls to…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If starbucks marketing department estimates the income elasticity of demand for its coffee to be…

A: ANS We know that, If the expected income falls then the expected sell will also fall because with…

Q: Discuss price elasticity of demand and how it is calculated.

A: The responsiveness to change one variable is referred to as elasticity. The price change will lead…

Q: Explain three determinants of price elasticity of demand.

A: Elasticity is a measure of a variable's response to a change in another variable; in most cases,…

Q: The price of a daffodil is $0.97. When average income is $52,000 demand for daffodils is given by P…

A: Income elasticity of demand measures the responsiveness of quantity demanded with respect to change…