You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the dataobtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.26, and since then theabsolute PED of Masks declined by 30% in June.(a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price -Insert one word answer (increase/decrease/unchanged)(b) The market price of the mask in July was Tk15 per unit. The total revenue earned in July was Tk300. You received the data for August and observedthat the price now in August is Tk26 per unit and the quantity of masks sold in August is 9 units.Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25

Price elasticity of demand refers to the percentage change in quantity demanded due to percentage…

Answered: You are an economist. Your friend…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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q3- What is the correct interpretation of elasticty value of 0.5 for Y with respect to X? Select one: a. If X increases by 1 unit, Y increases by 0.5 unit. b. If X increases by 1%, Y increases by 0.5%. c. If Y increases by 1 %, X increases by 0.5 %. d. If Y increases by 1 unit, X increases by 0.5 unit.
The cross price elasticity between two goods is +0.9, the initial prices of the two goods are P1 = $2 and P2 = $3, the initial quantities of the goods are Q1 = 10,000 and Q2=8000. Calculate the new amount of Q2 demanded if P1 increases to $2.75 Type your numeric answer and submit 21333 X
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please help the answers I got were wrong!!!

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