The short-term demand for crude oil in Country A in 2008 can be approximated by q = f(p) = 2,000,569p -0.03 , 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. (Type an integer or a decimal.) The elasticity of demand for oil is What is the elasticity of demand for oil when the the price is $76 per barrel? (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. OB. The demand is elastic, so as price increases, revenue increases. OC. The demand is inelastic, so as price increases, revenue increases. O D. The demand is inelastic, so as price increases, revenue decreases.

Review Question 1.2, If a 13 percent increase in the price of Cap'n Crunch cereal causes a 22 percent reduction in the number of boxes of cereal demanded, what is the absolute value of the price elasticity of demand calculation for Cap'n Crunch cereal? Epl= (Enter a numeric response using a real number rounded to two decimal places.) The demand for Cap'n Crunch is

The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $25 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.) Demand is unit-elastic inelastic elastic C Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 A B D 40,000 80,000 120,000 160,000 200,000 240, Quantity (taxi rides per day)

1) Assume that the percentage change of the price of product A is 5% (%Px and the percentage change of quantity demanded is - 10% (%Δqd), Find the following, a) The price elasticity of demand b) Is the demand for this product elastic or inelastic? c) If the price of the product A increases, What happens to total revenue? (increases or decreases)  d) if the price increases by 1% by how much quantity demanded will decrease (more than 1%, less than 1%, or by exactly by 1%)   2) Assume that the percentage increase in the price of product X ( %ΔPx) is 4% and the percentage change in quantity demanded in product Y ( %Δqd) is -5%, find the cross price elasticity (Eyx), are product X and Y substitutes or complements?         3) Assume that the percentage increase in income (%ΔI) is 4% and the percentage decrease in the quantity demanded  (%Δq) is -6%, find  income elasticity (EI), Is this product a normal or inferior product?       4) Is the elasticity for Corn flakes cereal is greater of less…

Worldwide annual sales of smart phones in over a five-year period were projected to be approximately q=-10p+4440 million phones at a selling price of $P per phone. Obtain a formula for the price of elasticity of demand E. In one particular year the actual selling price was $271 per phone. What was the corresponding price elasticity of demand? Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. What, nearest to the nearest 10 million, would have been the resulting annual revenue?

-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.)

The extended demand function of good X is: QDX = 1400 20 PX - 10 PY + 0.1 M where: QDX = quantity demanded of good X PX Price of good X PY = Price of related good Y (related in consumption to good X) M = Average consumer income. Fix the following variables: PX = 50 M = 10,000 Assume: PY changes from $50 to $80 What is the cross-price elasticity of the demand of good X with respect to PY [Use the arc elasticity formula.] a. -0.69 b. C. d. -0.87 Based on your answer to the previous question, goods X and Y are: b. 0.69 a. inelastic C. 0.87 d. complements inferior substitutes