Draw a supply and demand graph for new cars to show the impact of lower consumer incomes during the 2008-09 recession

The table below shows part of the aggregate demand schedule for smart phones in the country of Afluentia: Quantity demanded Price P QD $900 10,000 $700 14,000 i. Plot the demand curve for smart phones in Afluentia. Assume demand is linear. Calculate the price elasticity of demand when the price increases from $700 to $900 using the midpoint method. Make your calculations explicit. ii. All else being the same, what is Afluentia's total expenditure on smart phones when the price is $700? And when the price is $900? All else being the same, should Afluentia's suppliers charge $700 or $900 for a smart phone? Why? Explain briefly; show graphically and make your calculations explicit. iii. Now suppose younger people start also buying smart phones in Afluentia. This means 1,000 more smart phones are bought at any given price. As price increases from $700 to $900, is the price elasticity of aggregate demand now greater than, less than, or the same as it was in part (i)? Why? Explain briefly.…

For which product is the income elasticity most likely to be negative?  Group of answer choices 1. Bread 2. Rice 3. Used clothing 4. Cheerios cereal   A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues (as well as causing the smallest impact in society's economic welfare) if the price elasticity of demand is:  Group of answer choices 1. Inelastic. 2. Perfectly elastic. 3. Elastic. 4. Unit elastic.

Due to 5 percent fall in the price of food, it's demand rises by 12 percent. Find the price elasticity of demand and say demand is elastic or inelastic.

Calculating Price Elasticity Qd = 30 – 3*P P = 2 P = 5 P = 8 P = 6   Calculate elasticity of the price levels shown from 1 to 4.  Identify if this product is elastic, inelastic, or unit elastic. Show your work. As we move along the demand curve, what happens to elasticity?

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Apple sells 10 million iPhones at $100 each. Apple increases the sale price to $200. Sales decreased to 9 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..

Why do we say goods become more elastic over time?   Question 9 options:   people's incomes will increase, and so the elasticity of demand decreases.   the good's price will have a chance to return to its previous level.   people can find more substitutes, and so the elasticity of demand decreases.   people can find more substitutes, and so the elasticity of demand increases.

If the percent rise in price is larger than the percent decline in quantity, then: the demand for your product could be either elastic or inelastic. the demand for your product is elastic. the demand for your product is inelastic. the demand for your product could be neither elastic nor inelastic.

Explain elastic or inelastic demand in the automobile industry and how consumers respond to changes in price as a result of the elasticity.