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- In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. iv. Discuss one factor EACH that you think influence demand and supply for waterheaters. Provide examples v. Is demand for gas is price elastic or price inelastic? Explain your reasoningWhat is the current price of gasoline and how many gallons of gasoline do you currently buy per month? How many gallons would you buy next month and how would your behavior change if the price fell by $1.25 per gallon? Also, based on that information, what is your price elasticity of demand for gasoline? Be sure to show how you calculated your price elasticity of demand. current price of gas = $2.53 gallons of gas per month = 72 gallons no change for next month On the average I fill my tank up 3 times a month each time I go I spend $60-$654G l 7:08 68 https://vle.usm.edu.ph/m 2 Aretail store faces a demand equation for Roller Blades given by: Q = 180 - 1.5P where Q is the number of pairs sold per month and P is the price per pair in dollars. If we get the inverse demand or the price equation from the above equation, what will be the new demand equation? Select one: a. P = 0.67Q - 120 b. P = Q - 120 c. P = Q - 180 d. P = 1.5Q - 180
- Using the supply and demand equations given below: Demand Qd = 25 – 2PSupply Qs = 1 + P If the price falls from $8 to $7:a. Compute for the own price arc elasticity of demand. Provide an economic interpretationof your computed value (this is different from what is asked next) and classify the good according tothe type of elasticity. b. Compute for the price elasticity of supply. Provide an economic interpretation of yourcomputed value and classify the good according to the type of elasticity. 1. What is the relationship between total revenue and own-price elasticity of demand? 2. Illustrate a situation when the producer of a good will have a greater tax incidence than a consumer.What does elasticity have to do with tax incidence?Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market, then the market demand for soda will be 90 cans per month when the price of a can of soda is Mallory's Demand for Soda Price ($/can) 1.501 1.25 1.00 0.75 0.50 0.25 0 0 10 20 30 40 50 60 70 Quantity (cans of soda/month) Select one: O a. $1.50 O b. $0.50 O c. $1.25 O d. $0.75 Price ($/can) 1.50 1.25 1.00 0.75 0.50 0.25 0 0 Rick's Demand for Soda 10 20 30 40 50 60 70 Quantity (cans of soda/month)|Unit 3 Midterm Economics A docs.google.com/forms/d/e/1FAlpQLSfDzcagnpq9EUKBs3AWMb. a change in quantity demanded for one product or service causes a change in simple demand for a related product or service. * In 2. O Elasticity of Demand O Cross Elasticity of Demand O Diminishing Marginal Utility O Cost-Benefit Analysis O All of These O None of These The rules of the price system operate in all markets of a capitalist/market economy. The market where consumers earn income Market. by selling resources to business resources is called O Consumer
- 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.Please refer to the table below Price of iPhones. $700.00 $650.00 $500.00 $450.00 $300.00 $275.00 $250.00 $100.00 $50.00 Christy's Demand OA) 5 OB) 8 OC) 28 OD) 45 0 1 1 2 4 5 6 7 10 Lori's Demand. 0 0 1 2 3 4 4 5 Assume that the market for iPhone has only two consumers: Christy and Lori. According the table above, if the price of an iPhone is $275, the market will demand iPhones.Income effects depend on the income elasticity ofdemand for each good that you buy. If one of the goodsyou buy has a negative income elasticity, that is, it is aninferior good, what must be true of the income elasticityof the other good you buy?
- A 10 percent decrease in the price of a Pepsi decreases the demand for a Coca- Cola by 50 percent. The cross elasticity of demand between a Pepsi and Coca- Cola is Pepsi and Coca-Cola are: Select one: O a. 5; substitutes O b. 0.2; complements O c. 50; substitutes O d. 5; complements In order to prove that peanut butter and Jelly are complements, one should measure the and get a ***Destroy all sheets/clear white board during the exam before logging out (make sure the proctor sees you)** Select one: O a. cross-price elasticity; negative number O b. price elasticity of demand; number greater than 1 (in absolute value) O c. cross-price elasticity; positive number O d. price elasticity of demand; number less than 1 (in absolute value)suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of the game. If the suburban area has the ability to create additional parking during periods of peak demand, then O A the supply of parking will be more elastic and the price of parking wil increase by a relatively large amount the night of the game. O B the supply of parking wil be more elastic and the price of parking wil increase by arelatively small amount the night of the game the supply of parking wil be more inelastic and the price of parking will not change the night of the game o D, the supply of parking wil be more inelastic and the price of parking will increase by a small amount the night of the game. relatively o E. the supply of Paking will be perfectly elastic and the price of parking will increase by a relatively large amount the night of the game.The following table shows two demand schedules for a given style of men's shoe-that is, how many pairs per month will be demanded at various prices at Stromnord, a men's clothing store. $ Price $75 70 65 60 55 $ D1 Quantity Demanded 53 60 68 77 87 Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the start of the month of July and will not receive any more pairs of this style until at least August 1. Instructions: Enter your answers as a whole number. a. If demand is D₁, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July? What if demand is D2? D2 Quantity Demanded 13. 15 18 22 27 b. If the price of shoes is set at $75 for both July and August and demand will be D2 in July and D₁ in August, how many pairs of shoes should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory? pair(s) How many pairs of shoes should it order if the price…