Questions 5-8, graph and explain how each can contribute to high gasoline/oil prices. 5 Price elasticity of demand Price elasticity of short run supply
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A: In economics, price elasticity of demand is a measure of the change in a product's consumption when…
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A: Percentage change in price=4-4.504.50×100Percentage change in price=-0.504×100Percentage change in…
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A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
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A: Price elasticity of supply measures the responsiveness of quantity supplied to the change in price.
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A: The formula for cross-price elasticity of demand : Ec = Percentage change in quantity demanded of…
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Q: 3. The fewer substitutes for a good, the higher its price elasticity of demand. * True False
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- (A) Define the price elasticity of demand (B) Calculate the price elasticity of demand given that price rise by 10% and demand falls by 4% Please be quick5 The price goes from $4 to $2. the quanity demanded goes from 800 to 1000. what is elasticty of demand? do not use midpoint 0.5, 0.4, or 0.2.The figure below represents the weekly demand for GPS units. Price (dollars) 220 200- 180- 160 140 120 100- 80 60 40 20 0 Demand for GPS Units 40 80 120 160 200 240 280 320 360 400 440 Quantity (GPS units) < Prev ***Y 3 of 18 +++ www Next Maternit
- 35. The primary determinant of the price elasticity of supply of a good is: A. its degree of substitutability. B. the time frame for purchase of the good. C. fraction of a company's costs spent on the good. D. the amount of time suppliers have to respond to a price change.img' (a If po increases, what happens to the demand and supply of public transportation (shifts left/shifts right/doesn’t change) What happens to the equilibrium quantity and price for public transportation? (increase/decrease) (b)At a given price p, as oil becomes more expensive (po increases), does the (own) price elasticity of demand for public transportation increase / decrease / stay the same? (c) Calculate the cross-price elasticity of public transportation demand with respect to the oil price po, at the point p = 1 and po = 2. Are the two goods (public transportation and oil) substitutes or complements, or unrelated?(a) A manufacturer sells two products, A and B and had raised the prices of the two products recently to cover the higher production costs. The price and quantity for each product before and after the price change is given in the table below. Product Initial Price Initial Quantity Demanded New Price New Quantity Demanded A $250 280 $300 200 B $600 50 $750 45 Calculate the price elasticity of demand for both products using the midpoint method. Comment on their elasticities and explain two (2) possible reasons why they are different. What should the manufacturer do to the prices of the two products if the objective is to earn more revenue? (b) A monopolist has the demand and marginal cost as shown in the table below. There is no fixed cost in the production. Price Quantity Marginal Cost 10 1 2 9 2 3 8 3 4 7 4 5 6 5 6 (i) If the monopolist practices single pricing, determine the price, quantity, and profit of the monopolist. Explain how the quantity is…
- (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…The following is a demand schedule for shoes: Price (Per Pair) $120 $100 $80 $60 $4 Quantity Demanded 8 15 25 28 30 (in pairs per year) (a) As the price drops from $120 to $100 a pair, is demand elastic or inelastic? (b) A shoes salesman should raise or cut price to increase the total revenue if the current price is at $70?Five fact about gasoline price.
- 6. Elasticity and total revenue The following graph shows the daily demand curve for bikes in Chicago. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 Total Revenue 100 90 80 70 60 40 A 30 20 10 Demand 16 24 32 40 48 56 64 72 80 88 96 QUANTITY (Bikes) PRICE (Dollars per bike) 5011.) 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?(a) Define Price Elasticity of Demand. What are the 3 Types of Price Elasticity of Demand?(b) Calculate the Price Elasticity of Demand from the graph.(c) Depending on the elasticity, what kind of good does the given graph show? Explain