Py A consumer's Marshallian demand for y is given by gy (Pa, Py, I) = -3. The price of good y is py = 4 and the consumer's income is I = 15. What is ey,py, the consumer's own price elasticity of demand for y? (a) -15 (b) -5 (c) -5/12 (d) -1 (e) -15/16
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- (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?What would the gasoline price elasticity of supply mean to UPS or FedEx?In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by pq + p + 100g = 50,000. (a) Find the elasticity when p = $67. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. O Demand is elastic. Demand is inelastic. Demand is unitary elastic. (c) How would a price increase affect revenue? Revenue is unaffected by price. An increase in price will result in a decrease in total revenue. O An increase in price will result in an increase in total revenue.
- -x 230. If the demand Curve is the form of P= 10e ? where P is the price and x is the demand, what is the Price elasticity of Demand? (a) Kx (b) 는 (c) 5x (d) NoneConsider the demand function for bicycles in South Florida: Q = 24 + 3Y – 1.2P where: Q is quantity demanded, Y is monthly income, and P is the price per unit. If/when P = $54, and Y = $2,300, (a) Find the quantity of bicycles that would be sold. (b) Calculate the amount of the seller's total revenue. (c) Compute the price-elasticity of demand (Ep) for bicycles. (d) Interpret your result in (c). (e) Compute the income-elasticity of demand (Ey) for bicycles. (f) Interpret your result in (e).Suppose John, the owner-manager of a local hotel, projects the following demand for his rooms: Price ($) Quantity Purchased (per Night) Total Revenue 90 100 110 90 130 70 (a)Calculate the price elasticity of demand between $90 and $110. (Use the midpoint formula) (b)Is the price elasticity of demand between $90 and $110 elastic, unit elastic, or inelastic? (c)Will John’s total revenue rise if he increases the price from $90 to $110?…
- In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 69 - 300 at (9, p) = (25, 150). (b) How will a price increase affect total revenue? O Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will decrease the total revenue. O Since the demand is elastic, an increase in price will increase the total revenue. Since the demand is unitary, there will be no change in the revenue with a price increase. Since the demand is inelastic, an increase in price will increase the total revenue. Need Help? Read It Watch ItIn this problem, p is in dollars and q is the number of units. (a)Find the elasticity of the demand function 2p + 3q = 72 at the price p = 12. (b)How will a price increase affect total revenue? _Since the demand is elastic, an increase in price will decrease the total revenue. _Since the demand is inelastic, an increase in price will decrease the total revenue. _Since the demand is elastic, an increase in price will increase the total revenue. _Since the demand is unitary, there will be no change in the revenue with a price increase. _Since the demand is inelastic, an increase in price will increase the total revenue.Ernest's income elasticity of demand for natural gas is 0.4. His price elasticity of demand for natural gas is -0.3, and he spends 10% of his income on natural gas. What is his substitution price elasticity? (a) -0.26 (b) -0.34 (c) 0.20 (d) -0.12 (e) None of the above Correct answer is (a) -0.26; Please explain how to solve.
- Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.What is the state of elasticity of demand if it has demand curve that is parallel to horizontal axis and it as a horizontal demand curve? (a) Zero (b) Infinite (c) Equal to one (d) Greater than zero but less than infinityPrice (dollars) 15 B 10 5 D 50 100 150 200 250 Quantity (units) In the figure above, using the midpoint method, what is the price elasticity of demand between points A and B? A) 2.33 B) 1.00 C) 0.43 D) 0.13 20