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- Prove that price elasticity of demand is not the same as the slope of a demand curve.On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?What does a price elasticity of demand of 0.39 mean?
- The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?Estimate the price elasticity of demand and supply on equilibrium price and quantity.The price elasticity of demand for computers is -0.75 .The price elasticity of supply for computers is 4.25. The price of a new computer is $ 500. last year 50 million computers were bought by private citizens in America .The federal government is concerned that low income students do not have the sane access to computers as other students. To solve the problem ,the government has decided to purchase 1 million computers per year and distribute them to low-income households. What will be the resulting equilibrium price of a computer?
- A city government decides to tax hotel rooms to raise money. Before the tax, 1000 rooms were typically rented out per month. After the tax, the number of rooms rented per month falls to 900, the amount paid by hotel guests rises to $130 and the amount received by sellers falls to $110 per room. If the price per hotel room was $100 per night before the tax, which of the following can we conclude? The supply of hotel rooms is more price elastic than is the demand The demand for hotel rooms is more price elastic than is the supply The supply of hotel rooms after the tax is greater than the demand for hotel rooms The demand for hotel rooms after the tax is greater than the supply of hotel rooms We cannot conclude any of the options given with only the information provided.Macmillan Learning Consider two markets: the market for coffee and the market for hot cocoa. The initial equilibrium for both markets is the same, the equilibrium price is $4.50, and the equilibrium quantity is 35.0. When the price is $12.75, the quantity supplied of coffee is 71.0 and the quantity supplied of hot cocoa is 105.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places. Incorrect Supply in the market for coffee is less elastic than supply in the market for hot cocoa.Q46 China is the largest wheat producer in the world. Covid-19 has played havoc with the global wheat market. Suppose the price elasticity of demand for Chinese wheat flour is 0.20. If the price of Chinese wheat flour falls by 10 percent, we expect the the quantity demanded of Chinese wheat flour will increase by: Multiple Choice 20 percent and total expenditures on Chinese wheat flour will fall. more than the price of Chinese wheat bread. 20 percent and total expenditures on Chinese wheat flour will rise. 2 percent and total expenditures on Chinese wheat flour will rise. 2 percent and total expenditures on Chinese wheat flour bread will fall.
- Consider two markets: the market for waffles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $9.75, the quantity supplied of waffles is 57.0 and the quantity supplied of pancakes is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places. Supply in the market for waffles isSuppose that the government has a goal to reduce the demand for cigarettes in support of a health program. Given this, the government decided to impose a per-unit tax of 40 centavos per pack that is levied on the sellers or placed on the sale of cigarettes by the government. This causes a shift of the market supply of cigarettes from S to S' as shown. Price ($ per pack) S 1.50 1.40 1.30 1.15 D₂ Quantity (Millions of pack) 3 4 5 Answer the following questions regarding this case. 1. Determine the deadweight loss to society caused by the imposition of the tax. (3 points) Interpret the result. (3 points) 1 2. What tax revenue is expected to be collected by the government? (4 points) 1.25 + 1 1 D₁Consider two markets: the market for cat food and the market for dog food. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $8.75, the quantity supplied of cat food is 55.0 and the quantity supplied of dog food is 111.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for dog food. Please round to two decimal places. 1.81 Supply in the market for cat food is There is not enough information to tell which has a higher elasticity. the same elasticity as supply in the market for dog food. more elastic than supply in the market for dog food. less elastic than supply in the market for dog food.