Vijay Dairy is selling flavored milk and buttermilk in packets of 150 ml. The dairy sells 2000 packets of flavored milk and 1000 packets of buttermilk every day. The former is priced at Rs 6 and the latter is at Rs 4. A market survey estimates the cross price elasticity (both ways) to be + 1.8 and the own price elasticity of flavored milk to be -1.3. The dairy is contemplating a 10 per cent reduction in the price of flavored milk. Should it go ahead with price reduction? Why are why not? Show all the working

Which of the following is likely to have the highest in absolute value) demand elasticity? a.Cigarettes b.The group of branded, "premium " cigarettes as a whole (i.e. Camel, Marlboro, etc allcombined into one market) c.A necessary medication without close substitutes d.Camel brand cigarettes

econ mcq! May I ask how do I get the answer as well?

Mike's Mechanic Shop increased its total monthly revenue from $6,500 to $7,200 when it reduced the price of an oil change from $65 to $50. The price elasticity of demand for  Mike's Mechanic Shop is [NOTE: Total Revenue = Price x Quantity] Group of answer choices 1.38 0.72 0.39

YOU SELL  TWO DIFFERENT GOODS PRINTERS AND CARTRIDGES. THE PRICE ELASTICITY OF DEMAND FOR THE PRINTERS IS -3.4 AND YOU EARN A REVENUE OF RM 15000 PER MONTH FROM THE GOOD. YOU EARN A REVENUE OF RM 5000 PER MONTH FROM TONER CARTRIDGES. THE CROSS PRICE ELASTICITY OF DEMAND FO BOTH OF THE GOODS IS -2.5. IF YOU DECIDE TO DECREASE THE PRICE BY 5%, CALCULATE YOUR NEW TOTAL REVENUE FOR BOTH GOODS.

Jose owns a donut business in Los Angeles, and he wants to increase his total revenue. He knows that, when donuts are $1, he sells 200 an hour, and when he lowers the price to $0.75, he sells 280 an hour. A) Using the midpoint method, compute the price elasticity of demand for Jose’s donuts. Please show the formula used for understanding.  B) Based on (A) is demand for Jose’s donuts elastic or inelastic? How do you know? Explain  C) Should he raise or lower the price to generate more revenue.

The government decides to pass a law that requires all automobiles to have side and rear airbags. This law will increase the production costs by $3500 for all automobiles. If the demand for automobiles is highly inelastic, the carmakers will share this cost equally with car-buyers O pass almost all of this cost along to car-buyers pass very little of this cost along to car-buyers O stop producing automobiles Question 8 The income elasticity of demand for peaches has been estimated to be 1.43. If income grows by 15 percent in a period, how will that affect total revenue from peaches in that period, all other things unchanged? Total revenue will rise. Total revenue will fall. Total revenue will remain unchanged. O Not enough information is given to answer the question.

PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Triple Sevens's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from LAX to LAS (Dollars per roundtrip) Room Rate at Exhilaration (Dollars per night) 350 150 50 250 200 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Triple Sevens is charging $350 per room per night. If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens rooms per night. Therefore, the income elasticity of demand is from rooms per night to , meaning that hotel rooms at the Triple Sevens are If the price of an airline ticket from LAX to LAS were to increase by 20%, from $250 to $300 roundtrip, while all other demand factors…

Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic  and the annual supply curve is likely Flatter or Steeper  to be than the daily supply curve.

Assume lawyer services have an elasticity of demand of 2.0 in absolute value. Currently, a lawyer charges $300 per consultation and she has 100 consultations per week. If she raises her rate to $375 perconsultation (a 25% increase) her revenue wil (use the general formula for elasticity not the midpoint formula)rise from s30.000 per week to $31500 per weekrise from $30.000 per week to $33750 per weekfall from $30.000 per week to $18750 per weekfal from $30,000 per week to s26000 per week