Uber is one of the giant private corporations and its mobile app allows people to arrange transport with a phone it operates in more than 60 countries thanks to New tech and fluidity Uber competes with several service providers With the aid of a diagram explain the economic theory underlying a kinked demand curve. Justify whether it would be applicable in this
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Uber is one of the giant private corporations and its mobile app allows people to arrange transport with a phone it operates in more than 60 countries thanks to New tech and fluidity Uber competes with several service providers
With the aid of a diagram explain the economic theory underlying a kinked demand curve. Justify whether it would be applicable in this case
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- Currently Uber limits cars to only models that were produced in the past ten years. Suppose that Uber decides only models produced in the past five years can be driven. How does this affect the market for Uber Rides? Demonstrate graphically and briefly explain why.In 1998, five companies were found guilty because of their actions to raise the price of an animal feed additive, lysine, by limiting its supply. Explain why they would engage such a practice with the use of a graph. Assume that the demand for lysine is inelastic in the short term.The table below shows Tom's demand schedule for web tutoring before and after winning the lottery. Use the data provided to answer the following questions: Quantity Demanded (Hours per Semester) Price (per Initial Quantity After Increase Hour) Demanded in Income $50 1 8 45 2 9 40 3 10 35 5 12 30 7 14 25 9 16 20 19 22 15 10 27 12 15 20 Instructions: Enter your responses as a whole number. At what price would Tom buy 12 hours of web tutoring? a. Without a lottery win. per hour b. With a lottery win. per hour
- Consider the markets for widgets and cogs. You study survey data and observe that if widgets cost $5, then 100 widgets are demanded. You also observe that if widgets cost $3, then 150 cogs are demanded and if widgets cost $4 then 100 cogs are demanded. Given the information, determine and explain which types of elasticity of demand you are able to calculate, and then calculate using the two types of methods to calculate elasticity of demand. After calculating, please interpret the calculations.What would happen to a specific demand curve if one of the demand factors changed? Give an example of demand, and use properly labelled graphs to show your instances.The demand and supply of muffins in a small town are shown in the graph below. A great review of the town's bakeries in a major newspaper causes the demand for muffins to increase by 2 muffins at each price. Draw the new demand curve. (Be sure to make the new demand curve the same length as the original using the segment tool.) Then add a point at the new equilibrium using the point tool. +Move Price per muffin 8 6 5 D 3 2 0 Point Segment N 3 6 Quantity of muffins per week Undo -00 Redo x Reset 9
- No written by hand solution Suppose that Sam and Teresa are the only consumers of dance classes in a particular market. The following table shows their annual demand schedules: Price Sam's Quantity Demanded Teresa's Quantity Demanded (Dollars per class) (Classes) (Classes) 10 32 56 20 20 40 30 12 24 40 4 12 50 0 4 On the following graph, plot Sam's demand for dance classes using the green points (triangle symbol). Next, plot Teresa's demand for dance classes using the purple points (diamond symbol). Finally, plot the market demand forSuppose that the market for porcelain lupines in Freedonia is perfectly competitive and initially in a long nun equilibrium. Porcelain lupines are normal goods in Freedonia and are produced with a computer aided technology. Porcelain lupines and ceramic roses are substitutes while porcelain lupines and glass vases are complements. Suppose that a government report shows that people who possess ceramic roses are 72.74% more likely to suffer from erectile dysfunction. Describe with the use of diagrams the effects of this report upon the market for porcelain lupines in the short run and in the long run.Use the following graph of the demand for American cheese to answer the question below: 55 Price (per pound) 3 2 0 D₂ •D, 2460 10 12 14 16 18 20 Quantity Demanded (thousands of pounds per week) Refer to the three demand curves for American cheese and assume that American cheese is an inferior good. Which of the following would shift the demand from D1 to D2: A decrease in consumer incomes An increase in consumer incomes A decrease in the price of American cheese An increase in the price of American cheese
- The following calculator shows the demand curve for sedans (for example, Toyota Camrys or Honda Accords) in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the calculator shows market demand under the following circumstances: Average household income is $50,000 per year, the price of a gallon of regular unleaded gas is $4 per gallon, and the price of a subway ride is $2.00. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. 8 PRICE (Thousands of dollars per sedan) 30 10 0 0 Demand for Sedans Demand 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Demand for Sedans Price of a sedan (Thousands of dollars) Quantity Demanded (Sedans per month) An increase in average income causes a rightward…Imagine that you run the toll authority for a city bridge. You must charge all of your customers the exact same toll. Initially, you have set the price at $2 per trip. The following graph shows the daily demand curve for trips across the city bridge. On the following graph, use the purple rectangle (diamond symbols) to shade the area representing the total daily expenditure when the toll is $2 on the graph. Note: Select and drag the rectangles from the palette to the graph. To resize, select one of the points on the rectangle and move to the desired position. Once drawn, select inside the rectangle to see its area. TOLL (Dollars per vehicle) 10 9 8 2 1 0 Demand 01 2 3 4 5 6 7 8 9 QUANTITY (Thousands of vehicles per day) 10 When the toll is $2, total expenditure is $ An advisor has suggested that if you raise the toll to $3, total expenditure on tolls will rise. Total Expenditure at $2 per da Total Expenditure at $3 On the previous graph, use the green rectangle (triangle symbols) to…Explain the major determinants of demand and supply theorotically. Support your explanation by graph