The price elasticity of demand for uber rides is 0.5, the income elasticity of uber rides is - 0.2 and cross price elasticity of demand for uber rides with respect to petrol is 0.2. Comment on elasticity of demand for uber rides give your reason?

The price elasticity of demand for uber rides is 0.5, the income elasticity of uber rides is - 0.2 and cross price elasticity of demand for uber rides with respect to petrol is 0.2. Comment on elasticity of demand for uber rides give your reason?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

See similar textbooks

Related questions

Q: 1. Consider the following two player 2x2, normal form game: (Payoffs are starting from northwest and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Refer to Figure 1. When the price of the good is $14, the firm's maximum profit is a. $240. b. $180.…

A: What are the cost curves? A firm's total cost (TC) is the sum of the production's variable cost…

Q: For a firm, what does the production function represent? the concept of diminishing marginal product…

A: Microeconomics refers to the branch of economics that shows the behavior of individuals and…

Q: Question 4: Stability of the IS-LM model Consider the following short-run dynamics in the…

A: IS–LM model also known as Hicks–Hansen model expanded as investment savings (IS) and liquidity…

Q: 3) A firm operates with the production function Q = 5.4K (a) If the price of labor and capital are…

A: Profit is the gap between the income and the expense of a firm. The Cobb-Douglas production…

Q: 10-23. You have been requested to recommend one of the mutually exclusive industrial sanitation…

A: The benefit-cost method refers to the use of the benefit-cost ratio to analyze the profitability of…

Q: From 1980 to 2010 there were: only surplus budgets by the federal government. only deficit budgets…

A: The difference between S( total spending) and R( total revenue) of the government is known as…

Q: -Imports -Exports -Real Exchange Rate Nominal Exchange Rate Quarterly Time Period 2000Q1 2000Q3…

A: Imports refer to goods and services that are brought into a country from another country. On the…

Q: Which of the following is not a common tactic scammers use to get their victims to authorize payment

A: Scammers are the persons who take our money by using different tactics. They do fraud with us. At…

Q: Now suppose agent C can produce private information about the true realization x at t=1 at the cost…

A: The expected value of an outcome is the value of the outcome in the long period of time that the…

Q: EXERCISE 177.1 (Firm-union bargaining) A firm's output is L(100 – L) when it uses L≤ 50 units of…

A: Nash equilibrium is the level of stability where the payoffs of a person are maximum. Any movement…

Q: a rightward shift of the demand curve. a leftward shift of the demand curve. a rightward movement…

A: In economics, economic equilibrium is a situation in which economic forces such as supply and demand…

Q: When two cats, Euclid and Jamie, play together, their game involves facing each other while several…

A: An equilibrium point for a game where both players employ mixed strategies is a pair of mixed…

Q: 1o

A: Monetary policy is a collection of acts designed to govern a country's total money supply and…

Q: Define Gross domestic product (GDP) and list down the four components of GDP using the expenditure…

A: (1) The final value of S (services )and g (goods ) produced in an economy at a specified time period…

Q: human capacity

A: Human capacity means the power of the human. It means a person’s capabilities and strengths. How…

Q: Using a production possibilities frontier (PPF) diagram, determine how does the PPF change in…

A: The production possibility frontier represents the total output produced with the available…

Q: Moral hazard is a problem that arises when which situation occurs? There is a risk of a "lemon."…

A: A Moral Hazard is a problem of behaving less carefully at the cost of giving the burden of risk to…

Q: The government of a small country is planning sweeping changes in the tax structure in order to…

A: The income inequality is measured by GI( Gini index).The graph that shows the income inequality is…

Q: this situation as a strategic game.

A: Game Theory: Two students i1 and i2i1 effort =xi1-cost=cxi1i2 effort =xi2-cost=cxi2given…

Q: Current Account U.S. merchandise exports U.S. merchandise imports Merchandise trade balance U.S.…

A: Exporting refers to the selling of goods and services from the home country to a foreign nation.…

Q: 16. Assess whether the following would be counted as "unemployed" in the Current Employment…

A: The term unemployment refers to those people who have crossed a particular age limit and are not…

Q: Using a supply and demand analysis show first the labour market in equilibrium, and then show a) the…

A: supply and demand, means the relationship between the quantity of a commodity that producers wish to…

Q: Plants A and B emit 12 tons and 6 tons of carbon dioxide (CO2), respectively. MAC(marginal…

A: Given that; There are two Plants A and B A emits 12 tons of carbon dioxide B emits 6 tons of carbon…

Q: A firm has production function F(K, L) = 1/4 (K1/2 + L1/2) . The wage rate is w = 1 and the rental…

A: Cost minimization problem of producer: For the given output level the firm and per unit cost of…

Q: The demand function for product is p = -4q + 400 and the average cost for producing q units 500 is c…

A: Elasticity measures the change in quantity due to change in price. The demand is said to be elastic…

Q: Refer to Figure 3. Which of the panels represent the situation of a monopoly firm maximizing profits…

A: In a monopoly market, A monopolist will produce where the marginal cost curve intersects the…

Q: PLEASE CHECK THIS HOW TO SOLVE PLEASE TEACH EXPLAIN STEP BY STEP

A: A Nash equilibrium is a solution concept in game theory that represents a set of strategies for each…

Q: Consider the information given in the table below. What is the equilibrium price in this market?…

A: The general idea of quantity supplied relates to the law of supply. The law of supply states that…

Q: Consider a firm that produces glass. Glass production involves melting sand, soda ash, and limestone…

A: A constraint restricts or prohibits the success of a particular production procedure. According to…

Q: What variable makes the relevance/link between loanable funds market and market for foreign-…

A: The money that are available to be borrowed are referred to as "loanable funds," and this phrase is…

Q: Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm.…

A: In economics, profit is the difference between the revenue that an economic entity has received from…

Q: Problem. 6: Gator Office Supplies sells two models of fax machines. The wholesale cost of the Blue…

A: Profit is the term used to describe the monetary gain experienced when the revenue from an economic…

Q: The demand function for commodity products: Pd = 35-4Q and the supply function is Ps =5+Q. By the…

A: The equilibrium is established where the demand and supply are equal. The imposition of tax reduces…

Q: The city is a circle with a radius that extends from the point 0 to the bound- ary of the city x ̄.…

A: Exogenous variables refer to the explanatory variables that are determined or exist outside a model…

Q: b) You need to analyse the type of investment skills the fund managers have employed and suggest how…

A: The Fama model is a short-term asset pricing model developed in 1992 by Eugene Fama Noble prize…

Q: 1. The table shown below lists a characteristics obsno 1 2 3 4 5 525 526 wage 3.10 3.24 3.00 6.00…

A: The quality of data varies based on its nature, accuracy, and the sources from where it gets…

Q: Reinsurer A enters into a quota share agreement with primary insurer P - In this quota share…

A: A quota share is a type of reinsurance arrangement in which the reinsurer and the primary insurer…

Q: (a) Interest rate, i Demand, Z Output, Y Output, Y Hint: IS: Y= C(Y-T) + I(Yi) + 9+ (b) Interest…

A: The IS-LM curve model is concerned with the interaction of the goods and money markets. When…

Q: Market demand is given as QD = 280 - 4P. Market supply is given as QS = - 40 + 2P. In a perfectly…

A: Given information: QD = 280 - 4P ---------> market demand equation QS = -40 + 2P --------->…

Q: Below is a graph of the market for gram of legal recreational cannabis in MA. What is the…

A: The economy in the market of a product takes place at the intersection of market demand and market…

Q: Use diagrams to show Ricardian Equivalence and the Impact of a Budget Surplus on Credit Markets.…

A: According to the Ricardian Equivalence theory, interest rates are unaffected by deficits since…

Q: Why do some countries make rapid progress toward development while many others remain poor?

A: The "Vicious Cycle of Poverty" theory of Ragnar Nurkse contains the answer to this problem. He…

Q: Two coal-burning electric power plants are emitting mercury which impairs cognitive development in…

A: When businesses are obliged to eliminate and/or reduce unwelcome annoyances or harmful byproducts…

Q: of international reserves. a) appreciating: gain b) depreciating: gain c) depreciating; loss

A: International reserves are any sort of hold reserves, which national banks can pass among…

Q: Total Output (Q) (Pounds) (1) 0 100 250 320 380 380 420 430 Price per Pound ($2.00) (2) $2.00 $2.00…

A: firm's objective is to maximize the profit level which is measured as the difference between revenue…

Q: The manufacturer of smart printers is trying to decide what price to set for its product. The…

A: To maximize profits, the firm will be setting the marginal cost equal to marginal revenue.

Q: In the United States, imports of raw sugar are limited to about three billion pounds. The price of…

A: Trade restrictions refers to the policy adopted by the domestic government to control by prices of…

Q: Answer correctly and explain. I ll rate. Do it fast. The ________ suggests a negative relationship…

A: Phillips Curve: The Phillips curve shows the trade-off between the inflation rate and the…

Q: For each of the events describe below, you are required to explain: 1. The market you are…

A: The forces of supply and demand determine the equilibrium value of a good's price and quantity in a…

Question

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The table below provides elasticity estimates, use them to answer the questions that follow. Type of Elasticity Estimate Price elasticity of demand for uber rides -1.20 Price elasticity of demand for taxis -0.60 Cross-price elasticity of demand for uber and taxis 0.50 Income elasticity of demand for uber rides 0.95 Price elasticity of supply for taxis 0.40 Which of the following is true? a. Uber rides are a normal good and taxis are a substitute for ubers b. Uber rides are an inferior good and taxis are a substitute for ubers c. Uber rides are a normal good and taxis are a complement for ubers d. Uber rides are an inferior good and taxis are a complement for ubers
The table below provides elasticity estimates, use them to answer the questions that follow. Type of Elasticity Estimate Price elasticity of demand for uber rides -1.20 Price elasticity of demand for taxis -0.60 Cross-price elasticity of demand for uber and taxis 0.50 Income elasticity of demand for uber rides 0.95 Price elasticity of supply for taxis 0.40 Suppose there was a 15% decline in the quantity of ubers, what would be the effect on price? a.+9 % b. +25% 0c-9% Od.+12.5%
The table below provides elasticity estimates, use them to answer the questions that follow. Type of Elasticity Estimate Price elasticity of demand for uber rides -1.20 Price elasticity of demand for taxis -0.60 Cross-price elasticity of demand for uber and taxis 0.50 0.95 0.40 Income elasticity of demand for uber rides Price elasticity of supply for taxis Suppose there was a 15% decline in the quantity of ubers, what would be the effect on price? O a. +25% O b. +9% O c. -9% O d. +12.5%
Discuss the importance of considering elasticity in pricing decisions and the danger of relying solely on costs.
if the change in the price is 10percent and the value of elasticity is 0.5 then calculate how much quantity demanded will be decreased?
Based on your understanding of elasticity, will the elasticity of demand for HPlaptops increase, decrease, or remain the same when each of the followingevents occurs? Explain your answer.i. Other computer manufacturers, such as Apple, decide to make and selllaptops. ii. Following increased advertisements, Americans believe that laptops aremore efficient than desktop computers. iii. In the long run, new laptop models are produced. b. Because patties and coco bread are often eaten together, they arecomplementary goods.i. Note that both the equilibrium price of coco bread and the equilibriumquantity of patties have risen. What could be responsible for thispattern—a fall in the price of beef or a fall in the price of flour? Illustrateand explain your answer. ii. Suppose instead that the equilibrium price of coco bread has risen butthe equilibrium quantity of patties has fallen. What could be responsiblefor this pattern—a rise in the price of beef or a rise in the price of flour?Illustrate…
Based on the data in the table below, what is the own-price elasticity of demand for widgets?
would it be elastic or inelastic if a person spent 75cents per day for a candy bar regardless of the price? how would I know how to answer this?
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.
What is the role of elasticity in explaining the large price swings in the price of rental cars?
Is elasticity of demand of 2.5 high or low?
If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of hamburgers when the price increases by 10 percent. If the price falls by 5 percent, what will happen?