Suppose the demand and supply for Xbox-One are: Qd = 500 - 2P, Qs = -100 + 4P . Assume that consumers demand 75 less Xbox units at each price. Also, a new tax has been imposed on foreign microchips, increasing the costs of production, and reducing supply by 35 units at each price Given this information find: a. CS0 = $ b. CS2 = $  c. PS2 = $

Suppose (the numbers are loosely based on reality) that the tax on petrol is raised from 40 cents per litre to 60 cents per litre. The before-tax total cost of retailing petrol is $1.20 per litre. Assume that 100% of the tax is always passed through to consumers. After the increase in taxes, the quantity of petrol sold falls from 3,000,000 litres a day to 2,800,000 litres a day. Calculate the price elasticity of demand for petrol using the mid-point formula, based on the change in price due to the tax. Use three decimal places in your calculations. What are the implications for policymakers who want to raise revenue, when considering raising taxes on petrol?

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 both of the goods. [Anda menjual dua barang berbeza: pencetak dan kartrij toner. Keanjalan harga permintaan untuk pencetak adalah -3.4, dan anda memperoleh jumlah hasil sebanyak RM15,000 sebulan memperoleh jumlah hasil RM5,000 sebulan untuk kartrij toner. Keanjalan permintaan silang bagi kedua-dua barang adalah -2.5. Sekiranya anda membuat keputusan untuk menurunkan harga pencetak sebanyak 5%, hitung jumlah hasil baharu anda untuk kedua-dua barang tersebut.] (c) untuk barang tersebut. Anda

The demand for your product X has been estimated to beQX = 7, 880 − 4PX − 2PY + PZ − 0.1M where Y and Z are other (related) products. The relevant price and income data are asfollows: PX = 10, PY = 15, PZ = 50, M = 40, 000 what is quantity demanded ?

A: Decide whether each of the following statement is TRUE or FALSE, and explain the reason for your justification and correct the false statements: If the price elasticity of demand were -2.5 then a relative decrease of 10% in the price of the product will result in a relative decline of 10% in the quantities demanded for normal product.

The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula  q = 95e−3p2 + p,  where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥400. E = _____ Interpret your answer. The demand is going down/up by ____ % per 1% increase in price at that price level. Thus, a large price decrease/increase is advised. (b) At what price will revenue be a maximum?  ____ hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) ______ paint-by-number sets per month

How would the following changes in price affect total revenue? That is, would total revenue increase, decrease, or remain unchanged? i. Price falls and demand is inelastic.

If the price of electric vehicles rises as individuals become wealthier, all else constant, then electric vehicles must be  a _______ good - normal -inferior -substitute -complement

As the diesel prices have almost caught up the gasoline prices, the market for diesel cars has responded. What do you expect

(0.2) and that the rate of change of price to price is equal to (0.173) *. The elasticity of demand for the commodity is The elasticity of demand is (1). O The elasticity of demand is (2). 0 The elasticity of demand is (0.156) The elasticity of demand is (1.156) 0