3. In each case below, determine the effect on the sellers' total revenue and identify whether the demand curve in this particular market is elastic, inelastic or unit-elastic in the relevant price range. a. When the price per package of a brand of chocolate chip cookies increases from $4 to $5, monthly quantity demanded decreases from 2000 to 15000 b. A fall in the price of sugar from $4 to $3 per cartoon raises weekly quantity demanded from 20000 to 25000 cartoon. c. A rise in the quantity demanded of a monthly fashion magazine from 35000 to 40000 copies occurs when its price is reduced from $10 to $ 9.

6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in San Francisco. 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.   *graph 1*   On the following graph, use the green point (triangle symbol) to plot the annual total revenue when the market price is $30, $45, $60, $75, $90, $105, and $120 per bike.   *graph 2*   According to the midpoint method, the price elasticity of demand between points A and B is approximately ___ .   Suppose the price of bikes is currently $30 per bike, shown as point B on the initial graph. Because the demand between points A and B is ___ , a $15-per-bike increase in price will lead to ___ in total revenue per day.   In general, in order for a price decrease to cause a decrease in total revenue, demand must be ____.

37. If the price of a normal good decreases by 20%, and the quantity demanded increases by 30%, what is the price elasticity of demand using the midpoint formula? a. 0.75 b. 1.0 c. 1.5 d. 2.0

2. Imagine that you run a small bakery. In March the price of a cupcake was $2, and you sold 50 per day. In April you increased the price of cupcakes to $3 and you sold 40 per day. 1. Did your revenue increase or decrease? 2. What was the price elasticity of demand to Cupcakes when price increased from $2 to $3. 3. Do you think demand was elastic or inelastic prior to the change in prices

Bubblegum & Computers If the cross-price elasticity of computers with respect to bubblegum equals zero, what value (or range of values) do you expect for the cross-price elasticity of bubblegum with respect to computers? 5 Multiple Choice What happens to the market for "rescue" pets after a local flood brings many more dogs & cats into local shelters? Circle one answer for each: D, S, P, and Q. Demand: up, down, Price: up, down, unchanged unchanged Supply: up, down, unchanged Quantity: up, down, unchanged

Answer the following questions in your own words. Start a new thread while replying. 1. What are the determinants of price elasticity of demand? Explain the determinants. 2. What is the difference between inelastic demand and elastic demand? Provide an example of each from real life. 3. Refer to the graph below: Price 22 20 + 18 +- 16 + 14 B 12 10 + 4 Demand +++ 100 200 300 400 500 600 700 800 900 Buaxtity From the graph above calculate: a. Price elasticity of demand from point A to point B (use the mid-point method). Is it an elastic situation or an inelastic situation? b. Price elasticity of demand from point B to point C (use the mid-point method). Is it an elastic situation or an inelastic situation?

5) Calculate the arc price elasticity of demand for wheat in the two situations below: Farmer Brown's Wheat Old price; $3.40/bu Old quantity; 28,000 bu The Wheat Market Old price; $3.40/bu Old quantity; 2.5 billion bu New price; $3.20/bu New price; $3.20/bu New quantity; 2.525 billion bu New quantity; 35,000 bu Can you account for the difference in elasticities?

Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic  and the annual supply curve is likely Flatter or Steeper  to be than the daily supply curve.

23. Using the production possibilities table below, please answer the following question: Type of Production Schools Missiles Type of Production Schools Missiles A 0 16 A 0 16 Production Alternatives If the economy were at point D, what would be the opportunity cost of building 4 more schools? 24. Using the production possibilities table below, please answer the following question: B 4 15 B 4 15 Production Alternatives C 8 12 с 8 12 D 12 7 E 16 0 D 12 7 If the economy were at point D, what would be the opportunity cost of building one more missile? Please show your calculation for full points. E 16 0

Use the following information about the demand elasticities for apples’s in the US to answer the questions that follow.Own-price elasticity: -0.45Cross-price elasticity with bananas:  0.15Cross-price elasticity with eggs: -0.30Income elasticity: 0.15 Suppose that apple consumption in the US rose by 7.5% due to a change in income.  Which of the following happened?   a. Incomes rose by 100%   b. Incomes rose by 15%   c. Incomes rose by 200%   d. Incomes rose by 50%