Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 6, Problem 2IAPA
To determine
To find:
The quantity of haircuts bought per day, value of haircuts and the total surplus from haircuts.
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Draw a supply and demand curve for the iPhone 11. Apple announces that the iPhone 12 is coming out in 1 year, what happens to the supply or demand for iPhone 11s? Why?
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Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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- A rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. Kindly Answer ONLY (d) a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity.b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.arrow_forwardNeed help with drawing the demand curvearrow_forward1. The price of shampoo is 75 per dozen, quantity demanded is 30 dozen. If elasticity of demand is 3. How much is the price of shampoo per dozen if the quantity demanded falls to 22 dozen?arrow_forward
- 6. The table gives the income elasticities of demand for various products. Use it to answer the following questions a. Which product’s demand reacts the most when income changes? Product Income elasticity Haircuts 1.36 Ramen noodles −0.76 Tobacco 0.86 Airline travel 5.82 b. Which product’s demand increases during a recession when incomes fall? 7. The table gives the supply schedule for shoes. Calculate the elasticity of supply when Price (dollars per pair) Quantity supplied (millions of pairs per year) 120 1,200 125 1,400 130 1,600 135 1,800 a. The price rises from $125 to $135 a pair. b. The price is $125 a pairarrow_forward1. Work out the Price Elasticity of Demand for each, and comment on your result. a) The price of a smartphone is currently £200, and the quantity demanded is 4m. Next year the price falls to £180 and the quantity demanded rises to 6m. b) The price of pens today is £1, and the quantity demanded is 1m. Next year the price rises to £1.10 and the quantity demanded falls to 950,000. c) The price of a daily newspaper today is £1.50p, and the quantity demanded is 2m. Next year the price falls by 30p and the quantity demanded rises to 2.2marrow_forwardPrice elasticity of demand is defined as: a. the percentage change in price divided by the percentage change in quantity demanded b. the percentage change in quantity demanded divided by the percentage change in price c. the change in quantity demanded divided by the change in price d. the change in price divided by the change in quantity demanded e. the quantity demanded divided by the pricearrow_forward
- Answer each of the questions on your paper and/or in a computer file. To receive credit, youmust show all work. The price elasticity of demand for business air travel is -0.75 and for nonbusiness air travel is-1.50. a. Give an interpretation of the price elasticity of demand for business air travel. b. In what category does the price elasticity of demand for nonbusiness air travel fall? c. Show graphically how airlines could use third-degree price discrimination in thiscase.arrow_forward5 The price goes from $4 to $2. the quanity demanded goes from 800 to 1000. what is elasticty of demand? do not use midpoint 0.5, 0.4, or 0.2.arrow_forwardDraw a supply and demand curve for cheeseburgers. Cattle farmers created a supplement to give to their cows that make them grow twice as large, what happens to the supply or demand of cheeseburgers? Why?arrow_forward
- For a good with the following demand: Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (c) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain.arrow_forwardFill in the blanks using the number that corresponds to the correct word or phrase in the word bank 1. normal good 2. an increase 3. left 4. movement along 5. a decrease 6. demand shifter 7. right 8. inferior 9. shift 10. change in price A change in preferences that makes one good or service more popular will shift the demand curve to the A change that makes it less popular will shift the demand curve to the When the price of dunking doughnuts reduces, the demand curve for their coffee will shift If price of tea decreases, then the demand curve for coffee will shift For complement goods a decrease in price of one good leads to in the demand for another while for substitutes a reduction in price of one good leads to in the demand for the other. If the price of Tennis rackets falls the demand curve for tennis balls will shift If the price of Burger King reduces the demand curve for McDonalds will shift A good for which demand increases when income increases is called a good. A good for…arrow_forwardA rise in the price of a crate of Pepsi from USD 20 to USD 30 results in a fall in the quantity of crate of Pepsi demanded from 220 million to 180 million a day and at today’s price of a Coca-Cola, USD 15, the quantity of Coca-Cola demanded increases from 80 million to 100 million a day. a). Calculate the percentage change in the price of a crate of Pepsi and the percentage change in the quantity demanded of Pepsi. Use the average price and average quantity. b). Calculate the price elasticity of demand for Pepsi. c). Is the demand for Pepsi elastic or inelastic? Explain please d). Calculate and explain the cross elasticity of demand for Coca-cola with respect to the price of a Pepsi.arrow_forward
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