Suppose the demand curve for an individual firm in this market is highly elastic but not perfectly elastic. Then the above graph represents the market structure of at a quantity of choose your answer.... choose your answer... The firm will select its profit-maximizing quantity by setting choose your answer... sets/accepts a price of and experiences choose your answer... choose your answer...
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- O WORDS POWERED BY TINY QUESTION 11 Explain why is it unlikely that a firm would sell at a price and quantity where its demand curve is price inelastic? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIU S Paragraph Arial 14px 三v A v O WORDS POWEREDThe Nguyen’s Noodle House in a country town decides to due to the Covid 19 situation to decrease the prices for its takeaway meals by 5%. What will happen to their total revenue and the quantity sold if their product is: a) An elastic product? b) A unitary elastic product? c) An inelastic product? d) Which type of elasticity type do you think will apply to the meals of Nguyen’s Noodle House? Briefly explain what determinants of price elasticity will affect the product demand?o WORDS POWERED BY TINY QUESTION 11 Explain why is it unlikely that a firm would sell at a price and quantity where its demand curve is price inelastic? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). В I U S Paragraph 14px 三 Arial O WORDS POWERED !!!
- How do I get the price elasticity number?? and how do I graph it? P Q Price Total Elasticity Revenue $9.00 1 - 9 $8.00 2 16 $7.00 3 21 $6.00 4 24 $5.00 5 25 $4.00 6 24 $3.00 7 21 $2.00 8 16A town of 2000 households constitutes a market for eggs. Current sales are 2400 dozen eggs per week at aprice of $1.25 per dozen. 1200 households living on the west side of the river buy 1600 dozen eggs and their elasticity of demands is -1.5. The remaining households live on the east side of the river, buy the rest of the eggs and have an elasticity of demand of -3. Calculate the elasticity of market curve for the town as a whole.Vik and Fleet produce trainers in the sports-shoe market. For one of their main productsthey have the following demand curves: Vik PV =175 - 1:2Qv, Fleet Pf = 125 - 0:8Qfwhere P is in Rs. and Q is in pairs per week. The firms are currently selling 80 and 75 pairsof their products per week respectively.a. What are the current price elasticities for the products?
- If there are 10 bakeries in a small city, why might the elasticity of demand for the products any one of them supplies be high? Why might this small city not be a good location for you to open a new bakery?Q.8. What can you conclude about the price elasticity of demand in each of the following statements? “The pizza delivery business in this town is very competitive. I’d lose half my customers if I raised the price by as little as 10%.” “I owned both of the two Jerry Garcia autographed lithographs in existence. I sold one on eBay for a high price. But when I sold the second one, the price dropped by 80%.” “My economics professor has chosen to use the Krugman/Wells textbook for this class. I have no choice but to buy this book.” “I always spend a total of exactly $10 per week on coffee.”Shalimar Foods sells Vegetarian Corn Samosa plates for INR 30 each, and serves an average of 625 customers per week. During a recent promotion on the eve of India’s Independence Day , Shalimarcut its price to INR 25 each and observed an increase in sales to 750 plates per week.a. Calculate Shalimar’s price elasticity of Demand b. Shalimar is considering permanently lowering its price to INR 28 to increase revenue. Explainc. How many plates should Shalimar expect to sell at the new price?d. Does the move make sense in the light of Shalimar’s intent to increase revenue?
- Explain how the demand curves for normal productsand to, prestige products differ. What are demandshifts and why are they important to marketetS? Howdo firms go about estimating demand? How can marketetS estimate the elasticity of demand?126. The 1onovWIlng demanu TunctioII IS giveln. q = 40 – 3,5p Calculate the point elasticity of demand at p 20 and at p 10 A firm faces 127. demand function (where q=quantity demanded and p-price): q = 400 - 4p and a total cost (TC) function (where q=output): TC =q2 + 20q + 375 Find the firm's profit maximizing output level using the profit maximizing condition MR = MC A firm faces a demand function (where q=quantity demanded and p-price): q = 500- 6p 128.What can be said about the price elasticity of demand in each of the following statements? “The Tikka delivery business in this town is very competitive. I’d lose half my customers if I raised the price by as little as 10%.” “My economics professor has chosen to use the Mankiw textbook for this class. I have no choice but to buy this book.” “I always spend a total of exactly Rs.1000 per week on coffee.” A news website reported (Feb. 17, 2020) that ridership of Karachi Metro Bus declined after a fare increase: “There were nearly four million fewer riders in December 2019, the first full month after the price of a token increased Rs. 25 to Rs.150, than in the previous December, a 4.3 percent decline.” Use these data to estimate the price elasticity of demand for Karachi Metro Bus. According to your estimate, what happens to the Karachi Metro Bus’s revenue when the fare rises? Why might your estimate of the elasticity be unreliable?