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A. $15
B. $7.50
C. 0
D. $10
E. −$10
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- 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 Total Revenue 100 90 80 70 60 40 A 30 20 10 Demand 16 24 32 40 48 56 64 72 80 88 96 QUANTITY (Bikes) PRICE (Dollars per bike) 50monthly dearmad schedule for a good in a cucocly Semonth. Tires ara no marginal costs. The table below shows the monthly demand schedule for a good in a dinne $4.800 of fixed costs per month. There are no marginal costs. Quantity 400 Price ($) 30 TR ($) MR ($) 12,000 3,000 688 25 15,000 • 1,000 800 20 16,000 -1,000 1,000 15 15,000 -3,000 1,286 10 12,000 -5,000 1,400 5 7,000 -7,000 1,688 0 0 Instructions: Enter your answers to the nearest whole number ce, the monthly profit for each a. If they evenly split the quantity a monopolist would produce, the mantly s If duopolist A decides to increase production by 200 units, the monthly pppart 4 5 6 Q4 The market demand for laptops in a certain city of Ontario is shown in the following table. Calculate TR and answer the questions given below the table. Price {$} Quantity demanded Total revenue {TR} 3500 5 3000 10 2500 15 1500 25 1000 30 500 35 Do you think the demand is elastic when the price decreases from $1000 to $500? Why? {Apply TR test} Is the demand unit elastic between the price range of $2500 to $1500? Why? {Apply TR test} ‘Demand is elastic when the price decreases from $3500 to $3000? Do you agree? Why? {Apply TR test} What is the numerical value of the price elasticity of demand, Ed in the price range of $2500 and $1500? Apply Averages Method. Will it be a smart decision to decrease the price from $1500 to $1000? Why? Will it be a smart decision to increase the price from $500 to $1500? Why?
- When Maha earned AED 17,000 per month, he used to spend 1,000 dirham a months in supermarket A. Now that he earns AED 28,000 per month, he spends 1200 dirham in supermarket A every month. A. Calculate income elasticity of demand B. What type of products do supermarket A sells according to your result in A? Explain.en hired as an economic consultant by Google and given the lollwrg derrand wedfor wh st Price of Good X (Millions) Quantity Demanded for XQuantity Demanded ta (Millions) 260 240 5. Y Mllions) 200 220 240 10 15 220 20 200 260 Your advice is needed on the following questions: A) Draw the demand and supply curves for the above market. (4 marks) B) Calculate the price elasticity of demand for software X if the price of soltware X increases tom5 millen to 10 mil p t S whether it is elastic or inelastic.(4 marks) C) Calculate the cross elasticity of demand of software Y when the price of X falls from 20 milion lo 10 Mlion hdie between X and Y. (4 marks) D) Draw diagrams for the demand of X. If other things are not constant what will be the impact on the dend D E) Calculate the equilibrium price and quantity demanded and supply of the above market Label the equilm prt be quantity, and the equilibrium price. (4 marks) O Type here to searchHi I need help with this gr 11 economic question. Could someone explain the elasticity of demand and supply for Luxottica's product/industry?
- 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 2 Total Revenue PRICE (Dollars per bike) 88NR S 89 88 89 O 300 275 18 27 35 45 54 53 72 QUANTITY (Bikes) 91 Demand 90 99 108I understand how to compute the revenue but I'm stuck on computing the elasticity.PRICE (Yen per gram) 100 90 80 70 60 40 30 20 10 0 0 0 Demand + 20 40 60 80 100 120 140 160 180 200 QUANTITY (grams of uff per month) Graph Input Tool Demand for Uff Price of Uff (Yen per gram) to eat my uff this morning, but there wasn't any Quantity Demanded DEMAND SHIFTERS Average Income -(Yen per month) Price of Tulg (Yen per gram) Price of Snick (Yen per gram) Of Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a an increase in 50 100 100 20 50 Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward the demand curve. the demand curve and therefore When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are , and that tulg and uff are . For example, a Hermetian might say, "I went in my fridge. So instead of having uff for breakfast, I ate some
- A town of 2,000 households constitutes a market for eggs. Current sales are 2400 dozen eggs per week at a price of $1.25per dozen. 1200 households living on the west side of the river buy1600 dozen eggs and their elasticity of demand is -1.5. The remaining households live on the east side of the river, buy the rest of the eggs and have an elasticity of demand of -3. Calculate the elasticity of market demand curve for the town as a whole.A Movie theatre charges $20 for a ticket, with an average daily demand of 600 tickets. The theatre is running a loss and is considering changing its price to increase its revenue. The table below shows the demand schedule estimated by a consultant. Price Quantity of tickets demanded / day 19 620 20 21 600 580 Show all your calculations (either in the answer box below or in the file you will upload). Round your results to two decimal places. a. Using the midpoint method, calculate the percentage change in price and the percentage change in quantity if the movie theatre were to increase the price. b. ased on your answer in part (a) what is the price elasticity of demand? c. (- in order to increase its revenue, and how the elasticity estimate in (b) helps you reach your conclusion. Explain whether the movie theatre should increase or decrease its priceGiven below is a diagram showing the relationship of Internet providers price and the number of subscribers. Compute the Consumer surplus. * 3000 1600 secPE