11.) In the market for cars, the price elasticity of supply is +1.5, and the price elasticity of demand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million. (a) Assuming supply and demand are linear, reconstruct and draw the supply and demand curves. Label the intercepts. (b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after the tax? What is the new equilibrium quantity? Illustrate them on the same graph. (c) How big is the change in consumer surplus, producer surplus, government revenue, and deadweight loss?

5) A certain product has an (own) price elasticity that is elastic, and there is a decrease inthe revenue received. What change in the quantity demanded of a product is necessary to meet theconditions of each situation when there is a 15% increase in the price of that product? Be specific (andsuggest a number).

7

1 Find the price elasticity of demand if the market price is of a barrel of oil changes from $10 to $20 and the demand changes from 1000m barrels to 900 barrels.

The demand of a produa y depor another product X (P.). The price elasticity of with respect to X is *-0.8. (a) Are X and Y substitutes or complement? **rice the price of and the cross-u ofr (b) Suppose now P, increases by 2%, and P. decreases by Sh **** Will the quantity demanded of y increase or decrease cont

please see the attached1

The manager of a Cape Town superette carries a stock of Jive soft drinks. The countryexperiences an economic recession which yields an anticipated consumer income decrease of6 %. As a result, the income elasticity of demand for this product is estimated to be –2.5.(a) Calculate the percentage change in the quantity of your soft drink orders required toaccommodate the new demand without a surplus or shortage of inventory. [3](b) What does the elasticity coefficient of –2.5 reveal? [3]

(a)    Due to the increase in the demand for video games, the equilibrium price of video games increases by 10 percent, and the equilibrium quantity increases by 5 ercent.                                                                                         Is the price elasticity of demand for video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible).  Is the price elasticity of supply of video games elastic, inelastic, or indeterminate? Explain your answer (with calculation if possible).          (b)   Suppose Marcus produces chocolate with two inputs: factory and labor. If the workers become more productive with better training, state whether the average fixed cost, average variable cost, average total cost, and marginal cost will rise or fall?      (c)    After one month of operation, OU Café determined to shorten its business hours and close on weekends. What costs, fixed or variable, should OU Café have considered when it made the de

3. When the Price of a product was changed by 30%, the quantity demand has increased by 30%. Calculate the coefficient price elasticity of the product and analyze the degree of elasticity. Draw the elasticity curve for the scenario

A5