Suppose that friend A suggests the price increase to increase the total revenue and on the other hand, friend B suggests decreasing the price in order to increase the total revenue. Determine if the suggestions given by friend A and friend are correct or not. Y O Price P₁ D Q Q₁ Quantity Demanded a. Both friend A and friend B are correct. b. Both friend A and friend B are incorrect. c. Friend A is correct, and Friend B is incorrect. d. Friend A is incorrect, and Friend B is correct.

Demand for face masks at a small newsstand outside an airport is less elastic than demand inside the airport if _______. Select one: a. people prefer not to wear face masks. b. specific brands of face mask don't work as well. c. there are fewer substitutes at the stores inside the airport d. face masks are required to enter the airport.

hapter 3 i 13 The table below shows the weekly demand for hamburgers in a market where there are just three buyers. Price $ 6 5 4 3 Buyer 1 Qd 1 Buyer 2 Qd 2 Buyer 3 Qd 3 7 4 6 9 7 8 10 12 15 16 15 21 Multiple Choice If the price of hamburger falls from $5 to $3, then the weekly market quantity demanded will increase from 24 to 52. decrease from 52 to 24. increase from 120 to 156. increase from 29 to 55. 11,044 AUG 28 Saved ... .

Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, and the cross- price elasticity of demand between it and good Yis-3. Determine how much the consumption of this good will change it Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent

a. Define income elasticity of demand and cross-price elasticity of demand.     b. If a firm determines that the income elasticity of demand for its good is negative (EY < 0), what can be said about this good?     c. On the island of Econopia, the cross-price elasticity of demand between holilacs and bajwins is negative (EXY <0). What is the relationship between these goods?

Price (dollars per unit) 92 91 90 68 88 D 5 6 7 Quantity (units per day) 2 4 The figure shows a demand curve. Using the midpoint formula, the elasticity of demand moving from point A to point Bequals A) 1.00. B) 0.033. C) 2.00. D) 30

Price Refer to the below diagram, which shows demand and supply conditions in the competitive market for product X. A shift in the demand curve from D, to Do might be caused by B C Quantity O a decline in the number of buyers in the market. a decline in the price of a substitute good. an increase in incomes if the product is a normal good. an increase in incomes if the product is an inferior good.

when the price is $7 consumers want to spend $345.24 on spaghetti. when the price is $5 consumers want to spend $267.85 on spaghetti. what is the elasticity of demand between these prices?

Match each of the terms to their definition or description. (NOTE: This question is in reference to Cross-Price Elasticity and Income Elasticity.)                                                             Complements                                                             Inferior good                                                             Normal Good                                                             Substitutes A. as incomes increase, demand decreases; Income elasticity less than zero B. goods that have a cross-price elasticity less than zero C. as incomes increase, demand increases; Income elasticity greater than zero D. goods that have a cross-price elasticity greater than zero

When the price of designer jeans goes from $85 to $60, the quantity demanded increases from 100,000 to 120,000. Over this price range, the O a. demand for the jeans is elastic. b. demand for the jeans is inelastic. C. demand for the jeans is of unitary elasticity. d. arc elasticity of demand for the jeans is -4.