ofThe following represents demand for widgets (a fictional product):QD=44, 444-500P+ 0.2M-2PRwhere P is the price of widgets, M is income, and PR is the price ofa related (fictional) good, the wodget. Supply of widgets isdetermined byQs = 250P + 900Widgets areSelect one:and widgets and wodgets area. a normal good; substitutes.b. an inferior good; substitutes.C. an inferior good; complements.O d. a normal good; complements.Clear my choiceAssume that M = $68, 000 and PR = $72. The equilibrium price ofwidgets is $(do not include a dollar sign in youranswer; round to two decimal places).

Given data Qd= 44,444-500P+0.2M-2PR Qs=250P=900

The following represents demand for widgets (a fictional product): QD = 44,444-500P+0.2M - 2PR where P is the price of widgets, M is income, and PR is the price a related (fictional) good, the wodget. Supply of widgets is determined by Qs = 250P + 900 Widgets are Select one: a. a normal good; substitutes. b. an inferior good; substitutes. an inferior good; complements. O d. a normal good; complements. and widgets and wodgets are C.

The following represents demand for widgets (a fictional product): QD = 44,444-500P+0.2M - 2PR where P is the price of widgets, M is income, and PR is the price a related (fictional) good, the wodget. Supply of widgets is determined by Qs = 250P + 900 Widgets are Select one: a. a normal good; substitutes. b. an inferior good; substitutes. an inferior good; complements. O d. a normal good; complements. and widgets and wodgets are C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Now suppose that the good is an inferior good. Would the demand schedule still be valid for an inferior good
a) A consumer has a utility function given by U = x025 y0.75 He has an income of £100, the price of good x is £5 and the price of good y is £10. How much of the 2 goods x and y does the consumer buy? Take a picture of your workings and upload with your answer, or type out your workings. b) For the utility function above, what is the cross-price elasticity of demand for good x with respect to the price of good y? Take a picture of your workings and upload with your answer, or type out your workings. c) For the utility function above, what is the elasticity of demand of good x with respect to its own price? Take a picture of your workings and upload with your answer, or type out your workings.
If Beluga caviar has an income elasticity of demand which is > 0 and Ramen noodles have an income elasticity of < 0, it means that Multiple Choice The two goods are complements Beluga caviar is a normal good and Ramen noodles are an inferior good Beluga caviar has fewer substitutes than Ramen noodles Beluga caviar is an inferior good and Ramen noodles are a normal good
What is the sum of the own price elasticity of demand for X, the cross price elasticities, and the income elasticity of demand for X? Does this hold only for the given type of utility function or all well behaved utility functions? What does this mean?
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. If X is a normal good an increase in income will Multiple Choice increase D, increase P, and increase Q. increase S, increase P, and increase Q. decrease S, increase P, and increase Q. decrease D, decrease P, and increase Q
What happens to the demand curve for a normal good (draw an appropriate graph) in each of these cases? A) The Bhutan population grows 0.8 % in 2019. B) An economy ABC slides into recession due to the pandemic in 2020, leading to a fall in real incomes. C) The price of a substitute good rises.
Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows (DS = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon and PH is the selling price of the Horizon): Ds = 230 - 0.5 Ps + 0.38 PH DH = 260 + 0.1 Ps - 0.62 PH The store wishes to determine the selling price that maximizes revenue for these two products. Select the revenue function for these two models. Choose the correct answer below. (i) Ps Ds + PHDH = PH(260 - 0.1 Ps - 0.62 PH) + Ps(230 - 0.5 Ps + 0.38 PH) (ii) Ps Ds - PH DH = Ps(230 - 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) (iii) Ps Ds + PH DH = Ps(230 - 0.5 Ps + 0.38 PH) + PH(260 + 0.1 Ps - 0.62 PH) (iv) Ps Ds - PH DH = Ps(230 + 0.5 Ps + 0.38 PH) - PH(260 - 0.1 Ps - 0.62 PH) Answer: Option 3 Find the prices that maximize revenue. Do not round intermediate calculations. If required, round your answers to two decimal places. Optimal Solution:…
The State government is considering building a new highway. Linda lives near the proposed highway. Her demand for trips per month is given by Q = 60 - 0.5P, where Q is the number of trips and P is the average cost per trip in cents. The current average cost per trip is 60 cents, and the new highway is expected to reduce it to 40 cents. A legislator asks Linda how much she is willing to pay per month for the construction of the new highway. Linda: I am making 30 trips now when it costs me $0.60 per trip. With the new highway, the cost will be reduced to $0.40, so I am willing to pay up to 30 (0.6 - 0.4) = $6 per month. Do you agree with her reasoning?
Suppose the market demand for pizza is given by Qd = 300 – 20P and the market supply for pizza is given by Qs = -100 + 20P, where P = price (per pizza).
Assume the market demand for tuna cans may be written as Qtc = 45 - 2 x Ptc + Psc+ 0.3y (where Ptc = price of tuna cans and Psc = price of sardine cans, and y = income). Further assume that both tuna cans and sardine cans sell for $1 and income is $25. Calculate cross - price elasticity for tuna cans and identify whether the goods are substitutes or complements.
Assume that a 5 percent increase in income across the economy produces a 5 percent decrease in the quantity demanded of good X. The coefficient of income elasticity of demand is Multiple Choice positive, and therefore X is a normal good. negative, and therefore X is a normal good. positive, and therefore X is an inferior good. negative, and therefore X is an inferior good.
For each of the following situations, state whether total revenue received by the seller increases, decreases, or does not change. Type your answer in the blank space provided. Your answers should be increases, decreases, or does not change. a) If price elasticity of demand is -0.75 and price decreases, total revenue b) If price elasticity of demand is -1.5 and price decreases, total revenue c) If price elasticity of demand is -0.25 and price increases, total revenue d) If price elasticity of demand is -3.25 and price increases, total revenue e) If price elasticity of demand is -1.00 and price decreases, total revenue