price elasticities

Edison is a stay-at-home parent who lives in Chicago and provides math tutoring for extra cash. At a wage of $35 per hour, he is willing to tutor 10 hours per week. At $60 per hour, he is willing to tutor 19 hours per week. Using the midpoints formula, the elasticity of Edison's labor supply between the wages of $35 and $60 per hour is approximately means that Edison's supply of labor within this wage range is which

Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no price support, the equilibrium price for corn is $300 per ton and the equilibrium quantity is 500 million tons per year. Suppose that the government agrees to pay farmers $350 for every ton of corn they produce and can't sell in the market. According to the farmer's market supply curve, 600 million tons per year is supplied at the price of $350 a ton, so production should increase to this amount. However, domestic users of corn cut back their purchases. Only 450 million tons a year is demanded at the price of $350 a ton, and purchases decrease to this amount. Farmers continue to produce 500 million tons of corn per year, so because they produce a greater quantity of corn than domestic buyers are willing to purchase, something must be done with the surplus. To make the price support work, the government decides to buy the surplus. a. In this example, how many million tons does the…

The market for organic and locally sourced foods has skyrocketed over the past decade as consumers focus on improving their eating habits. However, severe droughts have caused organic food prices to rise significantly, forcing many consumers to shop at conventional supermarkets (which are increasingly adding organic food options) instead of organic food markets such as Whole Foods. In response, companies such as Whole Foods have begun offering more nonorganic options on their store shelves in order to provide their consumers with more affordable options. Based on this response, what did companies such as Whole Foods realize about the elasticity of demand for organic foods that caused them to lower their prices by changing the type of foods they sell?

Determine whether there is a specific market price above which demand is zero or price per unit is unbounded. Write the maximum possible market price, using dollars per unit as the units of measure for input. (If the price per unit is unbounded, enter UNBOUNDED.) D(p) = 3.6p-0 -0.3 p = units dollars per unit

Consider that the retail market for sanitizing wipes in a small locale is described by the follow demand and supply equations respectively: P = 8.40 - 0.02Q and P = 6.60 + 0.01Q where P is the price in dollars and Q is the quantity measured in thousands per week. The market is currently in equilibrium. (Question 8 of 8) Now consider than an unexpected viral outbreak led to consumers ensuring that much more surfaces (counter tops, door handles, etc.) are clean and sanitized. At the same time, the government's demand for sanitizing wipes at various public institutions (hospitals, schools, etc.) has impacted the supply of sanitizing wipes in the retail market. Although the government is neither a buyer nor seller in the retail market, their requests for sanitizing wipes does affect how many sanitizing wipes firms are able to supply in the retail market. The market for sanitizing wipes adjusts afterwards and the market is in equilibrium. Suppose that after the market for sanitizing wipes…

For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Triple Sevens is charging $200 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevensrises   from   rooms per night to   rooms per night. Therefore, the income elasticity of demand is    , meaning that hotel rooms at the Triple Sevens are    .

Susan is a volunteer fire fighter living in Detroit who teaches clarinet lessons to supplement their normal income. At an hourly wage rate of $15, they are willing to teach 5 hours per week. Upping the wage to $25 per hour, they are willing to teach 14 hours per week. Using the midpoint method, the elasticity of Susan's labor supply between the wages of $15 and $25 per hour is approximately means that Susan's supply of labor over this wage range is , which