Draw a graph of a perfectly inelastic demand curve. Use the line drawing tool to graph a perfectly inelastic demand curve. Properly label this line. Carefully follow the instructions above, and only draw the required object. Identify a product that would have a perfectly inelastic demand curve. Explain why demand for this product would be perfectly inelastic. demand curve because this type of product has to price. would have a perfectly inelastic substitutes and is
Q: Jerry's utility function is U(x,y) = (5x + y )18. Find Jerry's MRS (for good X in terms of good Y)…
A: The quantity of a good that a consumer is prepared to consume in comparison to another good,…
Q: Can you draw( i need a graphs) labor supply function : U(c,l)=log(c)+log(l) where, c-represents the…
A: Given Utility function: U(c,l)=log(c)+log(l) .......(1) Given market wage w=10 Total…
Q: Round up the answers to the nearest hundredths. Suppose that business travelers and vacationers…
A: "Since you have asked multiple questions,we will solve first question for you.If you want specific…
Q: A service car whose cash price was P540.000 was bought with a down payment of 162.000 and monthly…
A: Compound interest monthly refers that interest amount will be charge every month after adding the…
Q: A bakery needs to replace its old oven that has broken. It is considering the following options. Use…
A: Given Oven A Oven B Initial cost $4500 $7000 Annual operating cost $700 $500 Salvage…
Q: Write a discussion paper on Indigenous Laws and how they impact Indigenous peoples today. Please put…
A: Introduction Indigenous law is a legal framework with unique principles and standards. Indigenous…
Q: Which of the following is NOT one of the three things financial markets and institutions enable…
A: An efficient financial system is significant to a economic health of a country. Households,…
Q: ney supply is __ (1) __. This tool allows the Fed to __(2)__ change __(3)__ (1) the discount rate,…
A: The FED Reserve operates the monetary policy to produce desirable impacts on the economy. The…
Q: Here is a payoff matrix that is interesting. I am not in an imaginative mood, so I won't try to tell…
A: When player 1 chooses row top, then player 2 has more payoff in choosing column right. And when…
Q: Why does the government create trade barriers if they can potentially hurt a worker in an economy…
A: The buying and selling of goods and services between businesses in various nations is referred to as…
Q: Susan Ng owns an eight-year-old Prius automobile. She wants to find the present worth of repair…
A: Here we are given a payment stream, we will find the present value of that using the present value…
Q: A shift in the demand curve for bonds occurs when the quantity demanded changes at each given…
A: The bond demand curve shows the relationship between bond price and the quantity demanded of the…
Q: What is the effect of a fall in the real interest rate on the demand for loanable funds? A fall in…
A: The loanable funds demand curve depicts the inverse relationship between the quantity of loanable…
Q: Why short-run adjustment of output to demand may not take place as envisaged in marginalist theory?
A: Marginalist theory A concept of economics known as marginalist makes utilization of a product's…
Q: Suppose a tariff of now the "T-shirt" market is open to international trade. The world price for…
A: When a country imposes tariffs on imports of goods that compete with those produced by a small…
Q: A decrease in income should: Select one: Shift demand for an inferior product inwards Shift supply…
A: Inferior goods are those goods which are low quality products and it's income effect is negative.
Q: Can you think of a reason why making cars safer would create negative externalities?
A: Negative externalities happen when production and consumption place external costs on non-market…
Q: 15. The firm's profit maximization problem is: max n = F(r, w)-rk-wL {r, w} a. maxx=rK + wL-F(K, L)…
A: Note:- My dear student,As per Bartleby guidelines I have done only one answering at a time, because…
Q: a) Discuss and explain the effect of a decrease in the price of shoes on the supply of shoes
A: Shortage is when quantity demanded is greater than quantity supplied. And surplus is when quantity…
Q: pre 50 post 85 35 treatment control difference Calculate the effect of the policy using the…
A: The difference in difference is an empirical strategy used to quantify the causal impact of a…
Q: Suppose that the government imposes a tax on the market. D is the demand curve before tax, S is the…
A: Before tax equilibrium occurs at the intersection of demand and supply curves and after tax…
Q: 5. Motorcycle shop A sells brand new motor bikes at Php42,250 less 10%. Shop B, on the other hand,…
A:
Q: ollowing would definitely cause a decrease in the price level for the U.S.? a transition from…
A: Price level changes according to the change the demand and supply conditions. The sustained change…
Q: Assume that the interest rate is greater than zero. Which of the following cash-inflow streams…
A: Present value is the value of investment in today's dollar. Future value is the value of…
Q: George has a monopoly on burrito sales in a small town in Kansas. The burritos cost him a constant…
A: Q TR MR PROFIT TC 0 0 - 0 0 1 25 25 20 5 2 40 15 30 10 3 45 5 30 15 4 40 -5 20 20…
Q: (a) Does the probability of passing the test depend on Experience? Explain. (b) Matthew has 10 years…
A: Given The model in column 2 is a logit regression model in which the dependent variable is the log…
Q: Given the following: C(YT) = 200 +0.75(Y-T) I(r) = 80 - 20r L(r,Y) = Y − 90r G = 200 T = 75 M = 2500…
A: Given information C=200+0.75(Y-T) I=80-20r Md=Y-90r G=200 T=75 M=2500 P=4
Q: GDP includes: A) neither intermediate nor final goods. C) intermediate, but not final, goods. B)…
A: Introduction GDP is referred to as the total monetary value of all the final goods and services…
Q: ou are a pricing analyst for QuantCrunch Corporation, a company that sells a statistical software…
A: Two part tariff is followed by monopoly firm to maximize the profit. The consumer has to pay one…
Q: True or false: An increase in the share of income earned by the top half of the income distribution…
A: Suppose that initially there are 100 people in the economy and their income distribution is given…
Q: Suppose you have preferences for pizza (z) and soda (d). The price of pizza, pz = 5.00 and the price…
A: As per our policy, only solutions to the first three sub-parts are given here. If you want other…
Q: Aggregate consumption will certainly increase if
A: Please check the solution in step 2
Q: 2. Discuss the factors that contribute to economic growth. 3. List and briefly describe the 17…
A: As per student's demand, I have provided the answers of the mentioned two questions. 2. Answer:…
Q: What is A Dynamic Aggregate Demand and Aggregate Supply Mode ?
A: Aggregate supply refers to the total amount of goods and services supplied in the economy at given…
Q: Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is…
A: A cost is the worth of money that has been expended in the production or delivery of a good or…
Q: a) Draw a graph to illustrate the change in equilibrium. b) State whether each of the following…
A: Introduction Here we are given the IS-LM model. And at the intersection of the IS & LM curves…
Q: Label the graph in Figure 1 with all of the parts of the business cycle.
A: A business cycle will be reflecting the fluctuations in the Gross Domestic Product (GDP) around its…
Q: 1. Use the following demand schedule to determine total revenue and marginal revenue for each…
A: Total revenue is total receipts by selling the goods. It is equal to price multiply quantity. i.e.,…
Q: If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income…
A:
Q: 4. Apply the classical theory. Consider a hypothetical economy described below: Y=C+I+G C = 50+ c(Y…
A: Given information C=50+c(Y-T) I=300-20r Y=2000 T=900 G=1500 C=0.6
Q: Developed economies are less prone to banking crises than developing or less developed economies.…
A: When talking about banking crisis, it can be said that it is the situation when banks are running…
Q: The price of milk increases from $2.85 per gallon to $3.15 per gallon and the quantity supplied…
A: Elasticity is the concept used by economists to measure the responsiveness of supply to changes in…
Q: 6. The principle of transition dynamics can be summarized as: a. the further below its steady state…
A: 1) The transition dynamics idea is applied in the long-term Solow model. This theory states that any…
Q: Suppose income increases by 25 percent and, as a result, the quantity of a particular brand of…
A:
Q: Congress’s passage of new laws significantly relaxing the regulation of business would tend to…
A: The aggregate supply is the entire amount of output that enterprises will generate and sell. The AS…
Q: 3. A bicycle shop acquired a mountain bike at Php5,500 a piece. The shop sells it at Php9,000.…
A:
Q: Could you help me to compute the social optimum quantity of roses and the DWL in the competitive…
A: In the given question, The marginal cost (MC) of the producing roses is given as; MC = 30+2R and the…
Q: If price of the good and income levels change, the point on the demand curve will Select one: move…
A: For the demand curve, there are two significant steps must be follows: 1) Movement along on demand…
Q: Jeremy derives all of his utility from consuming milk shakes; he devotes his entire $20 allowance to…
A:
Q: Match the term with the definition: [?] is the rate you pay on the last dollars you earned…
A: Marginal value is the value from the last unit. Average value is the value per unit.
Q27
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demandOOK rink erences Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna's demand curve. Mc Graw Hill Price ($) 40 36 32 28 24 20 16 12 8 4 0 4 8 12 16 20 24 28 32 36 40 Quantity per periodCreative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demand
- For Washburn, what are examples of (a) shiftingthe demand curve to the right to get a higher pricefor a guitar line (movement of the demand curve)and (b) pricing decisions involving moving along ademand curve?What is a consumers wishedfor level of performances?Question H a Siven the table below, Calculote the average physicol product and morginol physicol produCf Heput lotal physicol Prodoct Aueroge Physicol Pineluct Marginal Physzcol Procuct 4. 24 6)Assume that demand for a commodity Maize is repiesented by the equetion R Ps10-0.2QP ond supply bythe equotion P=a+Du2@s, where Qd and @s are quantity demonded (ng) and Sopploed by Chg),respectiwoly, ond Pis price (us Dolbras) 1 Using the equilibicum Condition Os= Ad, solue the equotions to determine equilibrium price and eqailibium quantity. iJNow,assume that the gover ament intervenes by imposong a morket puce of 18 tor maize. What will be-che market Sutuotion Creadedl la tit this now morhet 19) How can you aduise the with the market situction created in f) ebove?
- Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve is much more inelastic. The price elasticity of demand has decreased from:-5.76 to -2.70.”Before the campaign your price was $240 per pair of BBB Shorts. What should bethe new price? Please show calculations.If you wanted to increase demand for your restaurant butare unable to lower prices or increase advertising, whatsteps might you take?6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Denver. 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. 2 Total Revenue PRICE (Dollars per bike) 88NR S 89 88 89 O 300 275 18 27 35 45 54 53 72 QUANTITY (Bikes) 91 Demand 90 99 108
- If cross-elasticity of one commodity for another turns out to be zero, it means they areClose substitutesNone of theseGood complementsCompletely unrelatedhe quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $136. The quantity demanded ach month is 1000 when the unit price is $106. The suppliers will market 750 espresso makers when the unit price is $80 er higher. At a unit price of $100, they are willing to market 2250 units. Both the supply and demand equations are known o be linear. (a) Find the demand equation. -1 -x + 146 25 p = (b) Find the supply equation. 1 x+ 70 p = 75* (c) Find the equilibrium quantity and the equilibrium price. |× unitsSupply and Demand The table below gives thequantity of graphing calculators demanded and thequantity supplied for selected prices.a. Find the linear equation that gives the price as afunction of the quantity demanded.b. Find the linear equation that gives the price as afunction of the quantity supplied.c. Use these equations to find the market equilibriumprice.