ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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If a firm finds that it can sell $32,000 worth of a product when its
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the
the demand for the product must have increased.
the demand for the product is elastic in the $10-$8 price range.
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- At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%. She estimates that the price elasticity of demand for Webs-R-Us is −0.70. The manager expects the number of websites designed to decrease by?arrow_forwardAn entrepreneur's most recent venture is selling robots that he builds and programs himself. At a price of $160 each, he sells 660 robots. At a price of $290 each, he sells 340 robots. What is the price elasticity of demand for his robots? Present your elasticity using its absolute value.arrow_forwardThe Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. If it decreases the price to $63, what should be the quantity sold? Will revenue increase? Why.arrow_forward
- This is similar to Section 3.9 Problem 2: The elasticity of a good is E = 0.8. (a) A 2% price increase will cause the demand to decrease Correct: Your answer is correct. by 16 Incorrect: Your answer is incorrect. %. (b) A 2% price decrease will cause the demand to increase Correct: Your answer is correct. by 16 Incorrect: Your answer is incorrect. %.arrow_forwardThe price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The initial quantity of the product is 190 units. Calculate the new quantity of the product, and use the midpoint methodarrow_forwardA fall in the price of radishes from $1 to $0.60 per bushel increases the quantity demanded from 19,000 to 21,000 bushels. The price elasticity of demand is Question 7 options: 1 5 0.2 1.2 .8arrow_forward
- If a 5% increase in price results in a 15% decrease in quantity demanded ... Group of answer choices The price elasticity of demand is -3.0, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes. The price elasticity of demand is -3.0, indicating that demand for this good is inelastic. We can conclude that this good likely has few substitutes. The price elasticity of demand is -0.33, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes. The price elasticity of demand is -0.33, indicating that demand for this good is inelastic. We can conclude that this good likely has few substitutes. The price elasticity of demand is -45%, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes.arrow_forwardPrice $20 18- 16 14 124 10- 8 100 200 300 400 + 500 600 Quantity Starting at P = $18, if we increase the price by 1%, the total revenue will increase and demand is inelastic at P = $18. Not change, and demand is unit-elastic at P = $18. increase and demand is elastic at P = $18. decrease and demand is inelastic at P = $18. decrease and demand is elastic at P = $18.arrow_forwardFind elasticity demand for p+0.0003x=15 at x=25,000 , what kind of elasticity is this?arrow_forward
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