The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars) $23,000 21,000 19,000 17,000 15,000 Quantity of Cars Demanded (thousands of cars) 600 628 640 668 680 An increase in income increases the quantity demanded by 10% at every price. Which of the following columns represents the new monthly quantity demanded for cars (in thousands of cars)? Price (dollars) $23,000 21,000 19,000 17,880 15,000 A C 668 532 668 688 552 682 788 572 784 648 728 592 726 668 748 612 748 688 D 688 620

The monthly quantity demanded for cars is shown in the table below. Demand for Cars Price (dollars) $23,000 21,000 19,000 17,000 15,000 Quantity of Cars Demanded (thousands of cars) 600 628 640 668 680 An increase in income increases the quantity demanded by 10% at every price. Which of the following columns represents the new monthly quantity demanded for cars (in thousands of cars)? Price (dollars) $23,000 21,000 19,000 17,880 15,000 A C 668 532 668 688 552 682 788 572 784 648 728 592 726 668 748 612 748 688 D 688 620

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the price is $6.00, the quantity demanded is 20. When the price is $9.00, the quantity demanded is 16. Calculate the price elasticity of demand. You must use the midpoint formula. Given the elasticity of demand, a 10% increase in price will cause quantity demanded to fall by what percentage? Explain your answer. Is this demand elastic or inelastic? Explain your answer. What is assumed about consumer income when you measure the price elasticity of demand? Walmart advertises that it has rolled back prices. If Walmart is rolling back prices to raise revenues, should it roll back prices on products that have a price elasticity of demand that is elastic or inelastic? Explain your answer.
M10
The table shows information on the conditions of demand for ordinary gummy bears and their sugar-free version. Regular Gummy Bears Demanded (thousands Price ($ per kg) $2.20 $2.60 $3 $3.40 Sugar-free Gummy Bears Demanded (thousands of kg) 181.00 175.00 157 137.00 of kg) 485.00 379.00 273.00 155.00 As the price of gummy bears rises from $2.60 to $3, what are the price elasticities of demand of sugar-free gummy bears and of ordinary gummy bears? Use the midpoint method and specify answers to one decimal place. Elasticity of demand of sugar-free gummy bears: Elasticity of demand of regular gummy bears:
Describe elasticity effects as it relates to services such as health care,higher education,food/produce and transportation?
Graphs NOT required! The demand and supply curves for potato chips are: Price Quantity demanded Quantity supplied (millions of bags per (cents per bag) (millions of bags per week) week) 20 180 160 30 160 180 40 140 200 50 120 220 60 100 240 70 80 260 80 60 280 a What are the equilibrium price and quantity of chips? b. Calculate the price elasticity of demand from 40 to 80 cents per bag (Show your work). Is demand elastic or inelastic over this range?
2. How can you use price elasticity to determine what the quantity demanded for gasoline right now with gasoline prices above $2. How do you determine quantity demanded of gasoline cars in the long-term due to high gasoline prices, and will we eventually switch to electric cars in the long-term?
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Price Quantiy Demanded (income = $15,000) Quantity Demanded (income = $24000) 640 8500 7400 920 7150 6900 1120 6450 5830 1300 5895 5385 1430 4950 4730 Calculate your income elasticity of demand as your income increasesfrom $15,000 to $24,000 if the price moves from $640 to $1,120. What does the value tell you about the good?
In 2019, 360,000 electric vehicles (EVs) were sold in the United States. Show your formula and calculation steps. a. Suppose the average price of these cars was $40,000. Calculate price elasticity of demand if a $2,000 tax credit caused an increase in sales by 20,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 30,000.
According to the U.S. Department of Energy, the average price of gasoline in the U.S. fell by 14% in 2015. The number of hybrid electric vehicles (HEV) sold in the U.S. fell by 36% in the same year. Calculate the cross-price elasticity of demand for HEVs and gasoline. Round answer to one place after the decimal.