2. The demand function for bottled water from Stillwater Springs is Q=25-10P + 51 Where P = the price of a 36-bottle case of the water and I = Average per capita income (in thousands of dollars). a. If I = 15 thousand dollars, what is the demand curve for bottled water? Q b. At P= $4, what is the point price elasticity of demand? What can you say about the profitability of a water sale? EQxPx A sale will increase profits/ reduce profits/ have an indeterminate effect on profits (Circle one)

2. Assume the demand for a product is given by q = f(p) = 150-p a) Find the elasticity function in terms of p. b) Find the elasticity when the price is $50. c) For which price values, does a decrease in price increase revenue?

c. Describe quantity and revenue responses to price changes when the price elasticity of demand (e) takes on the following values: (1) e = 0, (ii) 0 > e > -1, (iii) e = -1, (iv) e < -1

If Starbucks’s data analytics department estimates the income elasticity of demand for its coffee to be 2.5, how will the prospect of an economic boom (expected to increase consumers’ incomes by 5 percent over the next year) impact the quantity of coffee Starbucks expects to sell?Instruction: Enter your response rounded to two decimal places. It will change by _____ percent.

2. The demand function for a certain item is given by D (p) = 1000 - p³ Find the elasticity of demand to decide if the manufacturer should raise or lower the price from the current price of $5?

5. this question is too complicated

A. Using the mid point equation, calculate the price elasticity of demand for the market demand curve for a change from the equilibrium price of $4.00( show the equation and all calculations) is the demand curve elastic or I elastic for this price change? What would happen to the total market revenue if the price changed to $4.00  b. If a new firm(competitor) enters this market so that 6adsitional units are supplied at each price above $0, what would happen to the equilibrium price and quantity and the total market revenue of the market. Add a new market supply curve to your original graph and indicate the new equilibrium price and quantity on the appropriate axes.

Your firm receives revenue of $40MM per year from Product A and $90MM per year from Product B. The own- price elasticity of demand for Product A is -1.5. The cross-price elasticity of demand between Product A and Product B is -1.8. Suppose you increase the price of Product A by two percent:   a. How much will Product A’s revenue change?   b. How much will Product B’s revenue change?

Q1

Please do this problem step-by-step so I can make sure I did this problem right.