Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 6, Problem 9QE
(a)
To determine
Determine the
(b)
To determine
Explain the differences in elasticities.
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Market researchers estimate that the annual demand for ice cream in Gotham city is:
qi = (200,000Pp1/4)/ (Pi3/2Pb1/2)
where qi is the quantity demanded for ice cream in scoops, Pp is the price serving of pudding, Pb is the price per serving of brownies, and Pi is the price per scoop of ice cream.
a. What does the cross-price elasticity of demand equal between ice cream and brownies?
b. What type of commodities are ice cream and brownies?
You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is 25. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for both of the goods.
7) If the income elasticity of demand for books is 1,5, a 10 % increase in the income of consumers will cause a __ and books are _a) 15% increase in the demand for books, normal goodsb) 15 % decrease in the demand for books, superior goodsc) 15% increase in the demand for books, inferior goodsb) 15 % decrease in the demand for books, inferior good[14:16]If the elasticity of demand for umbrellas is -1.6 and the price of umbrellas increases by 10 %, the expenditures on umbrellas willa) decrease by 6 %b) decrease b 10 %c) increase by 10 %d) increase by 6 %
Chapter 6 Solutions
Microeconomics
Ch. 6.1 - If when price rises by 4 percent, quantity...Ch. 6.1 - Prob. 2QCh. 6.1 - Prob. 3QCh. 6.1 - Prob. 4QCh. 6.1 - Prob. 5QCh. 6.1 - Prob. 6QCh. 6.1 - Prob. 7QCh. 6.1 - Prob. 8QCh. 6.1 - Prob. 9QCh. 6.1 - Prob. 10Q
Ch. 6 - Determine the price elasticity of demand if, in...Ch. 6 - A firm has just increased its price by 5 percent...Ch. 6 - When tolls on the Dulles Airport Greenway were...Ch. 6 - Prob. 4QECh. 6 - Prob. 5QECh. 6 - Prob. 6QECh. 6 - Prob. 7QECh. 6 - Economists have estimated the following...Ch. 6 - Prob. 9QECh. 6 - A newspaper recently lowered its price from 5.00...Ch. 6 - Once a book has been written, would an author...Ch. 6 - Prob. 12QECh. 6 - Prob. 13QECh. 6 - Suppose average movie ticket prices are 8.50 and...Ch. 6 - Which of the following producers would you expect...Ch. 6 - Prob. 16QECh. 6 - Prob. 17QECh. 6 - Prob. 18QECh. 6 - Prob. 19QECh. 6 - Prob. 20QECh. 6 - Prob. 21QECh. 6 - Prob. 22QECh. 6 - Prob. 1QAPCh. 6 - Prob. 2QAPCh. 6 - Prob. 3QAPCh. 6 - Prob. 4QAPCh. 6 - Prob. 5QAPCh. 6 - Price elasticity is not just a technical economic...Ch. 6 - Prob. 1IPCh. 6 - Prob. 2IPCh. 6 - Prob. 3IPCh. 6 - Prob. 4IPCh. 6 - Prob. 5IPCh. 6 - In 2004, Congress allocated over 20 billion to...Ch. 6 - In 2004, (Congress allocated over 20 billion to...Ch. 6 - Prob. 8IPCh. 6 - Prob. 9IPCh. 6 - Prob. 10IP
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