When consumers' incomes rise by 5 percent and other things remain the same, the quantity of frozen mixed vegetables demanded decreases by 3 percent and the quantity of fresh asparagus demanded increases by 12 percent. What is the income elasticity of demand for frozen mixed vegetables? The income elasticity of demand for frozen mixed vegetables is >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign

When consumers' incomes rise by 5 percent and other things remain the same, the quantity of frozen mixed vegetables demanded decreases by 3 percent and the quantity of fresh asparagus demanded increases by 12 percent. What is the income elasticity of demand for frozen mixed vegetables? The income elasticity of demand for frozen mixed vegetables is >>> Answer to 1 decimal place. >>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Scenario: When the price of haircuts increases by 15%, the number of haircuts demanded by consumers decreased by 25% A-what is the elasticity of demand for haircuts (write the full equation)
The demand for a product is q=29p7 items when each item costs p dollars. What is the price elasticity of demand?
Macmillan Learning Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 35.0. When the price is $12.75, the quantity supplied of coffee is 71.0 and the quantity supplied of hot cocoa is 105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places. Incorrect Supply in the market for coffee is less elastic than supply in the market for hot cocoa.
Suppose that demand for automobiles increases by 20% when consumers’ incomes increase by 15%. What is the income elasticity of demand for automobiles? Round your answer to two decimal places
Rising peanut prices have forced peanut butter makers to raise the price of peanut butter from $2 to $3 per jar, causing quantity demanded to fall. In addition, sales of jelly also dropped by 15%. Soon thereafter, makers of chocolate spread dropped its price from $4 to $3 per jar. This resulted in a further decline in peanut butter sales by 20%. What is the cross elasticity of demand between peanut butter and jelly (use the midpoint method)? Are these two products complements or substitutes?
According to the U.S. Department of Energy, the average price of gasoline in the U.S. fell by 14% in 2015. The number of hybrid electric vehicles (HEV) sold in the U.S. fell by 36% in the same year. Calculate the cross-price elasticity of demand for HEVs and gasoline. Round answer to one place after the decimal.
Suppose that consumers experience a 5 percent increase in income and purchase walking shoes increase by 6 percent. What is the income elasticity for walking shoes? (Give your answer to one decimal place.)
A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD's. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD's. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD's compliments or substitutes? Does your answer make sense? Explain.
Suppose that during the past year, the price of a laptop computer fell from $2,950 to $2,450. During the same time period, consumer sales increased from 430,000 to 619,000 laptops. Calculate the price elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original New Average Change Percentage Change Quantity Price Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity and then dividing by 2. Do the same for the average price. Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do…
Suppose that in a week the price of spaghetti sauce increases from $5.00 to $5.50 per jar. At the same time, the quantity of spaghetti sauce demanded at a typical grocery store decreases from 10,000 to 8,500 jars per week. What is the price elasticity of demand for spaghetti sauce? Instructions: Round your response to one decimal place. -1.7
Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of automobile demanded (holding the price for this particular automobile constant) increases by 39 percent. The income elasticity of demand for this brand of car is (Enter your response rounded to two decimal places and include a minus sign if appropriate.)
If the supply elasticity of pork is 0.46, by how much will quantity supplied increase if price increases by three percent? Is the supply for pork elastic or inelastic?