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. 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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q1
QUESTION 3 Explain the term price elasticity of demand?How is it measured? If the price elasticity is -3 and RM 200 is the marginal cost of product X,what should be the optimal sale price? (Hint:apply the mark -up rule)
5. The demand function is given by: Q= Y e¯ 0.01P. a) If Y = 800, calculate the value of P for which the demand is unit elastic. b) If Y = 800, find the price elasticity of the demand at current price of 150. c) Estimate the percentage change in demand when the price increases by 4% from current level of 150 and Y = 800. d) Calculate Q if P=100 and Y=900.Then determine if the product is superior or inferior with justification.
Q4
Please do this problem step-by-step so I can make sure I did this problem right.
5. If Reebok Shoes (RS) experiences a decrease in popularity, which of the following would happen? a shift in the Demand curve for RS to the right a movement along the demand curve for RS, downward and to the right a shift in the supply curve of RS to the right a shift in the Demand curve for RS to the left no shift in the Demand curve for RS
8. Refer to Figure 2 below. Using the midpoint method, what is the price elasticity of supply between point B and point C? 1.44 1.29 0.96 0.69 a. b. C. d. 9. Refer to Figure 2 below. If, holding the supply curve fixed, there were an increase in demand that caused the equilibrium price to increase from $6 to $7, then sellers' total revenue would a. b. C. d. a. b. increase. decrease. remain unchanged. The effect on total revenue cannot be determined from the given information. C. d. PRICE 10 9 8 7 6 5 4 3 2 1 Figure 2 Supply 10. Which of the following statements is valid when the market supply curve is vertical? Market quantity supplied does not change when the price changes. Supply is perfectly elastic. An increase in market demand will increase the equilibrium quantity. An increase in market demand will not increase the equilibrium price. 50 100 150 200 250 300 350 400 450 500 QUANTITY ||
1. The demand function for a certain brand of CD is given by p = -0.01x² - 0.2x + 10 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. The supply function is given by p = 0.01x² + 0.2x + 4 where p is the unit price in dollars and x stands for the quantity that will be made available in the market by the supplier, measured in units of a thousand. Determine the producers' surplus if the market price is set at the equilibrium price. (Round your answer to the nearest dollar.)
You operate your own business selling college t-shirts, The demand equation for your t-shirts is as follows: Q = 50 – 2P. a. Calculate the own-price elasticity of demand when the price equals $10 per shirt. o. Interpret this elasticity. c. Categorize this elasticity. %3|
6:357 A webassign.net In this problem, p is in dollars and q is the number of units. (a) Find the elasticity of the demand function p + 2p + q = 100 at p = 9. (b) How will a price increase affect total revenue? O Since the demand is unitary, there will be no change in the revenue with a price increase. O Since the demand is inelastic, an increase in price will decrease the total revenue. O Since the demand is elastic, an increase in price will decrease the total revenue. Since the demand is inelastic, an increase in price will increase the total revenue. Since the demand is elastic, an increase in price will increase the total revenue. Need Help? Read it
ELASTICITY OF DEMAND Scenario 3: I choose Almarai company a. If your company's product has many substitutes in the market, what happens to the elasticity of your product? If your company's product has few substitutes in the market, what happens to the elasticity of your product? If your company's product has no substitutes in the market, what happens to the elasticity of your product. b. Use a numerical data of price and demand to show the price elasticity of your good. c. Draw and show this effect of change in price on the demand for your company's product with the help of a demand curve. By excel
answer them please and show work!