Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 6.1, Problem 4Q
To determine
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Your Best Brand Bike Shorts - BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, "the taste for bicycling has changed. The price
elasticity of demand is much more inelastic. The price elasticity of demand has decreased from -5.76 to -2.70."
Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be?
Please enter the new price here: $ [a] Show only your answer in the box. Do not include steps in the box and do not add the dollar sign.
YOU JUST GOT FIRED FROM YOUR JOB AS A LAWYER AND YOUR SAVINGS IS ALMOST DEPLETED. AS A RESULT, WHAT WILL HAPPEN TO YOUR DEMAND FOR LUXURY GOODS SUCH AS WATCHES AND DESIGNER CLOTHES?
IN WHICH DIRECTION WILL THE DEMAND CURVE SHIFT?
Assume that you own a small boutique hotel. In an attempt to raise revenue you reduce your rates by 20 percent. However, your revenue falls. What does this indicate about the demand for your boutique hotel rooms?
The demand curve for your hotel rooms is vertical.
Demand is inelastic.
Boutique hotel rooms are inferior goods.
Demand is elastic.
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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- If the demand for the product/service you are selling is inelastic, would you increase the price? Why or why not?arrow_forwardDescribe the price sensitivity you expect your customers to have based on the price elasticity for clothing.arrow_forwardThere is a sale going on at XYZShop. As a consumer, can you consider the sale or increase in demand as a cost-effective way to reduce the price?arrow_forward
- When the price of a certain product was considered to be "low", consumers spent $5 million monthly on it. After the price doubled, the total consumer expenditures increased to $7 million. Recently you read that this means that the demand curve for this product is upward sloping. Do you agree? Explain.arrow_forwardJenna runs a small boutique in Capitola. She tells one of her suppliers that she is willing to pay $6 for a pair of wool hand warmers and not a dime more. On the basis of this information, what can you conclude about her price elasticity of demand for wool hand warmers? The price elasticity coefficient is 0. It is elastic. It is perfectly inelastic. It is perfectly elastic.arrow_forwardThe more time consumers have to adjust to a change in price: the smaller will be the price elasticity of demand. the greater will be the price elasticity of demand. the more likely the product is a normal good. the more likely the product is an inferior good.arrow_forward
- A local pizza owner decides to hire an economic consultant to help him set his prices. Currently, one slice of pizza costs $2 and the store sells about 800 slices per week. The economic consultant estimates that the price elasticity of demand is equal to -0.5, and suggests that the shop owner should increase the price of a slice of pizza by $0.25; that is, the consultant recommends increasing the price of pizza by %. The consultant claims that doing so would result in a decrease in the number of slices sold by and result in 수 in revenue.arrow_forwardCharles loves Mello Yello and will spend $10 per week on the product no matter what the price. What is his price elasticity of demand for Mello Yello?arrow_forwardEvaluate the behavior of consumers in terms of the demand for productsarrow_forward
- Melanie really enjoys using her old-school charcoal grill to cook steaks, but she has found that due to environmental regulations, charcoal prices have gone up 50%. What is her price elasticity of demand for the rest of this month going to be compared to what it will be in the spring? Please explain why.arrow_forwardGive a reason why food has an inelastic demandarrow_forwardQ56arrow_forward
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