Suppose that the price of a good changes from 10 dollars to 20dollars while the quantity demanded changes from 200 units to 125units. Therefore, the arc price elasticity of demand is:OA -0375.OB -0.692OC 0012OD -1200,

The markets are the place where the buyers and sellers of various commodities tend to meet and…

Answered: Suppose that the price of a good…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A single producer company surveyed the elasticity data of its product X. The results indicated that: - X has an income elasticity of +0.8 - The cross-elasticity of X with Y is equal to -0.7 - The price elasticity of X is |0.8| Given these results, the company estimated that the forecast increase in consumer income is 5% next year, the expected increase in the price of Y is 10%. If the company intends to increase its sales by 3% in the following year, what is your recommendation for an adjustment in the price of X? (Hint: Consider the increase in income, then the effect of Y on X and then calculate the price adjustment to be made)
-0.03 The short-term demand for crude oil in Country A in 2008 can be approximated by q = f(p) = 2,000,569p where p represents the price of crude oil in dollars per barrel a represents the per capita consumption of crude oil. Calculate and interpret the elasticity of demand when the price is $76 per barrel. The elasticity of demand for oil is. (Type an integer or a decimal.) What is the elasticity of demand for oil when the the price is $76 per barrel? 1 (Type an integer or a decimal.) Interpret the elasticity of demand. Choose the correct answer below. O A. The demand is elastic, so as price increases, revenue decreases. O B. The demand is elastic, so as price increases, revenue increases. OC. The demand is inelastic, so as price increases, revenue increases. OD. The demand is inelastic, so as price increases, revenue decreases.
The cross-price elasticity between two products is estimated to be -0.5. If the price of the first product is increased by 8%, demand for the second product will a) increase by 16% b) decrease by 4% c) increase by 4% d) increase by 8%
The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomac's closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $545. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut. a) What is the arc cross elasticity of demand between Potomac's oven and the competitive Spring City model? b) If Potomac knows that the arc price elasticity of demand for its ovens is −2.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?
a) 1,13b) 0,13c) -0,13d) -1,13
Given a 10% fall in petroleum price and a 6.2 percent rise in daily wage paid to hired labour used for the production of rice. Estimate the net effect of these changes on the production of rice, given that the elasticities of production due to petroleum price and dialy wage are 1.15 and 1.25 respectively.
-0.06 The short-term demand for crude oil in Country A in 2008 can be approximated by q = f(p) = 1,952,082p where P represents the price of crude oil in dollars per barrel and q represents the per capita consumption of crude oil. Calculate and interpret the elasticity of demand when the price is $62 per barrel. The elasticity of demand for oil is (Type an integer or a decimal.)
Problem 6. The respective demands for margarine (marg) and for meals away from home (mah) in the UK during the period 1920-1937, as functions of personal income r, were estimated to be Dmarg = Ar-0.165 and Dmah = Br2.39, for suitable constants A and B. Find and interpret the (Engel) elasticities of Dmarg and Dmah with respect to r.
please help the answers I got were wrong!!!
The demand for office chairs in thousands is Q=40-2 P2 At a price of $2, the price elasticity of demand is: Selected Answer: -0.25.

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Suppose that the price of a good changes from 10 dollars to 20 dollars while the quantity demanded changes from 200 units to 125 units. Therefore, the arc price elasticity of demand is: OA -0375 OB -0692 OC 0012 OD -1200