Many restaurants think that Buffets can give more revenue compared to normal food servings.

How would you expect the elasticity of demand for each of the following products to compare with the price elasticity of demand for standard car tires? Explain your answer. a. Snow tires (not necessary, but handy on snowy days) b. School bus tires (purchased with tax dollars on a fixed schedule) c. Bicycle tires (which require a smaller portion of a consumer's income than car tires) d. Tires made by the most reputable company (more of a luxury than a necessity)

The price of guacamole, a complement for tacos, increases. What happens in the market for tacos? Supply decreases Supply increases Demand decreases Demand increases

Which of the following goods would you expect to have the lowest price elasticity of demand? Diamonds Yachts Rice Vacation Homes

The demand curve for cameras is Q=400-2P where P is the price of a camera and Q is the number of cameras sold per week. Answer the following questions.A. If the vendor has been selling 120 cameras per week, how much revenue has she been collecting?B. What is the price elasticity of demand for cameras?C. Does the law of demand hold?D. If the vendor wants to generate more revenue, should she raise or lower the price of cameras?

Why do bars offer free peanuts?

A taco hut is trying to determine its demand if it changes it's price. In 2019, they sold tacos for 1.00 and sold 6,000. In 2020, they increase the price of tacos to 1.50 and demand dropped to 5,500. In 2021, the owners of the taco hut want to increase taco price to 2.00 dollars. What would demand be for 2021? What if they lowered the price to .50, how much would demand be?

According to what you've learned about the price elasticity of demand, do you think that education in community colleges has an elastic or inelastic demand? Why? Explain your answer

Two drivers—Kenji and Lucia—each drive up to a gas station. Before looking at the price, each places an order. Kenji says, “I'd like 10 gallons of gas.” Lucia says, “I'd like $10 worth of gas.”   Why does Lucia's demand has an unit elasticity instead of an elasticity equal to infinity?

DINKS are households with "double income, no kids", and such households are invading your neighbourhood. You decide to take advantage of this influx by starting a gourmet take-away food store. Assume that these DINKS in your neighbourhood are your only potential customers. You know that the price elasticity of demand for your food from DINKS is 0.5, and their income elasticity of demand is 1.5. From the standpoint of the quantity that you sell, explain which of the following changes would concern you most. First, the number of DINKS in your neighbourhood falls by 10 percent. Second, the average income of DINKS falls by 5 percent.