If the price elasticity of demand for gasoline is 0.3, and the current price is $1.20 per gallon, what price of gasoline will reduce its consumption by 20%? a) $ 3.70 c) $0.324 d.) $ 1.11 b.) $ 0.876
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- What would the gasoline price elasticity of supply mean to UPS or FedEx?(Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?What might you infer about the price elasticity of demand for diesel fuel in the short run? In the long run?
- 2c statements is true or false and explain if the demand for laptops has a price elasticity of -5 and an income elasticity of 2.5, then a price cut of 1% is necessary to offset a 1% income dropWhich of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.-x 230. If the demand Curve is the form of P= 10e ? where P is the price and x is the demand, what is the Price elasticity of Demand? (a) Kx (b) 는 (c) 5x (d) None
- If the price elasticity of demand of for gasoline is - 1.8, then a 15% decrease in quantity demanded is caused by a How much increase in the price?11.) In the market for cars, the price elasticity of supply is +1.5, and the price elasticity ofdemand is -0.8. The equilibrium price is $ 30 thousand, and quantity is 120 million.(a) Assuming supply and demand are linear, reconstruct and draw the supply and demandcurves. Label the intercepts.(b) To reduce traffic, the government imposes a $400 tax on cars. What are PB and PS after thetax? What is the new equilibrium quantity? Illustrate them on the same graph.(c) How big is the change in consumer surplus, producer surplus, government revenue, anddeadweight loss?3. Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by the following demand function q = 13.572P-1.5
- Using the table below calculate the cross-price elasticity of flour with respect torice [4 marks]P1 P2 Q1 Q2Flour $9 $12 $40 $ 25Rice $4.45 $6.75 $150 $125Question 7At $73,a firm can sell 4,585 stereo earphones (3.5 mm for android). At this price, elasticityis estimnated at 2.5. What is the change in total revenue (+ or -) if the firm drops price by11%? Round your answer to the nearest dollar.(a)Diagrammatically show and explain how oil prices dropped as concerns over fuel demand in the near term in COVID-19 pandemic hit Europe and the United States. (b)Diagrammatically show and explain what happened to the oil market if the price remained unchanged despite the concerns over the fuel demand. (c)You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for…
