S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per case, and at the same time, th quantity of Kraft macaroni and cheese sold dropped from 198 to 132 cases. a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places. b) What is the relationship between the two products? They are (Click to select) (Click to select) substitutes permanents BH ►

S Suppose that the price of President's Choice macaroni and cheese decreased from $10 to $9 per case, and at the same time, th quantity of Kraft macaroni and cheese sold dropped from 198 to 132 cases. a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places. b) What is the relationship between the two products? They are (Click to select) (Click to select) substitutes permanents BH ►

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give typing answer with explanation and conclusion “This week, my place of employment, Super-Save Supermarket, lowered the price of apples from $1 to 80 cents per pound. The quantity of apples we sold last week was 200 pounds. And this week, the quantity sold was 250 pounds. I’m interested in knowing about the price elasticity of demand. In this case, can it be described as elastic, inelastic, or unitary elastic? What do you predict will happen to total revenue?”
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14. Suppose that when the price falls by 40% for a particular good, the quantity demanded of this good rises by 5%. The price elasticity of demand for this good is equal to: (show your calculations and workouts) a. 6 b. 8 c. 0.125 d. 0.5
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Suppose that demand schedule for discs is represented in the table below. PRICE ($) 8 10 QUANTITY DEMANDED (INCOME $10,000) 40 32 QUANTITY DEMANDED (INCOME $12,000) 50 46 If your income is $12,000, use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10. Select one: O a. The price elasticity of demand for discs is equal to -1.25 and demand is elastic. b. The price elasticity of demand for discs is equal to -1 and demand is inelastic. c. The price elasticity of demand for discs is equal to -0.375 and demand is inelastic. Od. The price elasticity of demand for discs is equal to -1 and demand is unit elastic.
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6. The demand for coffee is given by the function: Q = 8.5-p-0.3p + 0.1Y, where p is the price of coffee, ps is the price of sugar, and Yis consumer income. a. Calculate the income elasticity of demand when Q = 10 and Y = 30 and interpret your answer. b. Calculate the cross-price elasticity of demand when Q = 1 and P = 0.6 and interpret your answer.
If a 12% rise in the price of grape juice increases the quantity of orange juice demanded by 8%, what is the cross-price elasticity of demand for orange juice with respect to the price of grape juice? Is the demand inelastic or elastic? ion Select one: O a. 0.67 and elastic O b. 0.67 and inelastic O C. 1.50 and elastic O d. 1.50 and inelastic age Next page Australian Institute of Business