Your firm receives revenue of $40MM per year from Product A and $90MM per year from Product B. The own- price elasticity of demand for Product A is -1.5. The cross-price elasticity of demand between Product A and Product B is -1.8. Suppose you increase the price of Product A by two percent:   a. How much will Product A’s revenue change?   b. How much will Product B’s revenue change?

3. Suppose the price elasticity of demand for heating oil is 0.2 in the short run and 0.7 in the long run. a. if the price of heating oil rises from $1.80 to $2.20 per gallon, what happens to the quantity of heating oil demanded in the short run? In the long run? (Use the midpoint method in your calculations.) b. Why might this elasticity depend on the time horizon?

suppose a pharmaceutical company considers increasing the price of insulin tm $125 per vial to $300 per vial. whenthe price was $125, the company sold 100, 000 vials per day. the company knows its price elasticity is .25. calculate thepercentage change in quantity demanded that would result in a price elasticity of .25. show your work

Price (P) В $50 $30 Demand 800 1,200 Quantity (Q) In the figure above, the price elasticity of demand from point A to point B is: Select one: а. 0.67 b. 0.8 С. 1.25 d. 1.0

Which of the following is likely to have the highest (in absolute value) demand elasticity? A.Cigarettes b.A necessary medication without close substitutes c.Camel brand cigarettes

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.

Demand for GPS Units 220 200 180- 160 - 140- 120- 100 80 60 40- 20- 40 60 120 160 200 240 260 320 360 400 440 Quantity (GPS units) Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. a. When going from a price of $120 per unit to a price of $100 per unit, what is the price elasticity of demand for GPS units? b. When going from a price of $100 per unit to a price of $120 per unit, what is the price elasticity of demand for GPS units? c. Using the midpoint formula, what is the midpoint price elasticity of demand for GPS units between a price of $120 per unit and a price of $100 per unit? d. When going from a price of $60 per unit to a price of $40 per unit, what is the price elasticity of demand for GPS units? e. When going from a price of $40 per unit to a price of $60 per unit, what is the price elasticity of demand for GPS units? t Using the midpoint formula, what is the…

If the price of sugar rises from $16 per kg to $18 per kg. the quantity supplied expands from 100kg to 150kg. What is the elasticity of supply of sugar?

In the coffee market, you notice that when the price of a kilo of coffeechanged from $28 to $16 the quantity of coffee supplied changed from 65to 40 kilos, all else held constant. What is (own) price elasticity of supplyfor coffee?

What would you predict about the relative price elasticity of demand for ladies short zip-up coats? The demand for ladies short zip-up coats is OA. more price elastic than the demand for ladies zip-up coats, since the product group of ladies short zip-up coats is broader than the product group of ladies zip-up coats. B. more price elastic than the demand for ladies zip-up coats, since the product group of ladies short zip-up coats is narrower than the product group of ladies zip-up coats. OC. less price elastic than the demand for ladies zip-up coats, since the product group of ladies short zip-up coats is narrower than the product group of ladies zip-up coats. D. less price elastic than the demand for ladies zip-up coats, since the product group of ladies short zip-up coats is broader than the product group of ladies zip-up coats.