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- QUESTION 3 A buyer's willingness to pay for a good is the O maximum demand for, is willing to pay for that good. It measures how much the buyer the good. Oprice of, values Omaximum amount the buyer is willing to pay for, values minimum amount the buyer is willing to pay for, needs actual amount the buyer pays for, valuesAfter analyzing the demand for his products, Ahmed realized that the demand for his products is inelastic. This means that, O a. the demand for his products are sensitive to price changes O b. it is not advisable to increase his price O c. the demand for his products are weak O d. it is fine to increase his priceThe shorter the period of time consumers have to adjust to price changes, the O lower; income O lower price O higher; income higher; price the elasticity of demand.
- ASAP DECİSİON RULE FOR UTİLİTY MAXİMİZATİON As I understand we choose the good which has higher marginal utility per dollar . BUT MY QUESTİON İs that What if our budget is not end up and the marginal utility per dollar is same for both good What should we do at that point? PLEASE ANSWER MY QUESTİON DONT GİVE CLLASİC DEFİNİTİONSuppose X is an inferior good and the price of X rises Select one: O a The IE will be larger than the SE. O b. The SE will be a decrease in X. O c. You will buy more X as its price rises. O d The IE wilI be a decrease in X.Consumers maximízestheirutiliy when Ybren a. The marginal utility of each good is equal 6. The marginal utility per rial spent on each good is equal to zero across ll commodities c. The ratio of the prices facing any one consumer is equal to that facing any other consumer (d.) None of the above, PE = -0-8
- The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.If the quantity demanded of widgets drops by 10% in response to a 20% decrease in the price of gadgets: a. Widgets and gadgets are complements, with a cross-price elasticity of demand of -2. b. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 10. c. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 2. d. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 0.5. e. Widgets and gadgets are complements, with a cross-price elasticity of demand of -0.5.Price 0 Quantity Refer to the above graph. An increase in price, other factors constant, would cause a change from Multiple Choice O point 1 to point 6. O point 4 to point 5. O point 5 to point 1. point 3 to point 4.
- IS zero. O True False 2. Cigarettes tend to have a price-elasticity coefficient greater than 1.* O True False 3. The fewer substitutes for a good, the higher its price elasticity of deman TrueIf the price of a product decreases by 10 percent and the quantity demanded increases by 5 percent, then O the producer should lower the price further to sell more and further increase total revenue. the producer should raisc the price, but not as high as it was, to increase total revenue. O the produucer should raise the price higher than where it was to experience higher total revenue. O the producer should change the price back to where it was before the change.Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve 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 bethe new price? Please show calculations.