The price inelasticity of demand.

Question

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Answer 1

Question

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

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Students have asked these similar questions

Please answer questions D-H, I have already answered A , B,C but it may help you to still solve them yourself. Thank you!

2. A firm’s production function is given by:Q = 10KLThe unit capital and labour costs are 2 and 1 pounds respectively. The firm is contracted to produce2000 units.(a) Write out the optimisation problem of the firm. (b) Express this problem using a Lagrangian function. (c) Find values of K and L which fulfil the contract with minimal cost to the firm. (d) Calculate the total cost to the firm.

3. Consider the following estimated regression equation, estimated using a sample of firms, where RDis total firm spending on research and development in USD ($), Revenue is total firm revenuein USD ($), and W ages is the firms’ total spending on wages in USD ($) (standard errors inparentheses):RDd = 1000(600)+ 0.5(0.1)Revenue + 1.5(0.5)W ages,(a) Interpret the coefficients on each of the explanatory variables. (b) Which of the three coefficients are statistically significant at the 5% level of significance? Howdo you know? A researcher runs a two-sided statistical test of the null hypothesis that both the coefficients onthe explanatory variables above are jointly equal to 0.25 (mathematically, that β1 = β2 = 0.25),and reports a p-value of 0.045.(c) What does this p-value mean for the outcome of the test? (d) What would an appropriate two-sided alternative hypothesis look like?

Answer 2

Question

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

Answer 6

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Answer 7

Chapter 5, Problem 1FT

Subpart (a):

To determine

The price inelasticity of demand.

Answer 8

Subpart (a):

Expert Solution

Explanation of Solution

Fruit is more likely to be in-elastically demanding. This is because fruit as a whole has fewer substitutes than any other item in the category of the fruits.

Answer 9

Subpart (a):

Expert Solution

Answer 10

Subpart (a):

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Concept Introduction:

Price elasticity of demand: The price elasticity of demand is the responsiveness of the quantity demanded to a change in the price measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the price of the product.

Answer 13

Subpart (b):

To determine

The price inelasticity of demand.

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Answer 14

Subpart (b):

To determine

The price inelasticity of demand.

Answer 15

Subpart (b):

Expert Solution

Explanation of Solution

Since the people are relatively inelastic or inflexible in a short run, demand for beef over the next month is more inelastic.

Answer 16

Subpart (b):

Expert Solution

Answer 17

Subpart (b):

Expert Solution

Answer 18

Expert Solution

Answer 19

Subpart (c):

To determine

The price inelasticity of demand.

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Answer 20

Subpart (c):

To determine

The price inelasticity of demand.

Answer 21

Subpart (c):

Expert Solution

Explanation of Solution

The demand for the gasoline in the entire city is more in-elastically demanding. This is because branded goods are more elastic than other categories. This implies very good substitutes for Exxon gasoline, which may be available at close distances whereas fewer substitutes may be available for the category of gasoline.

Answer 22

Subpart (c):

Expert Solution

Answer 23

Subpart (c):

Expert Solution

Answer 24

Expert Solution

Answer 25

Subpart (d):

To determine

The price inelasticity of demand.

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.

Answer 26

Subpart (d):

To determine

The price inelasticity of demand.

Answer 27

Subpart (d):

Expert Solution

Explanation of Solution

Insulin is more a necessity good for the buyers of insulin. This implies the demand for insulin from buyers is more inelastic than the demand for vitamins for the buyers of vitamins.