Homework Answers
36) can't be determined from this information
Increase in price will lead to increase in total revenue when demand is inelastic, but the increase in total revenue is unknown. Without that effect on marginal revenue cannot be determined.
37) an inferior good
Negative income elasticity means increase in income leads to decrease in quantity demanded. This happens with inferior goods.
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QUESTION 36 If the demand for a good is price inelastic and the good price is...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
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1. Suppose the price elasticity of demand for farm products is inelastic and the federal government...
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1 If the price of a substitute good decreases the Demand for the other good will...
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QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends...
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Q3. The general linear demand for good X is estimated to be Q = 25,000 -...
Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a...
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8. The income elasticity of demand is a measure of the responsiveness of the 0 A....
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The following scenarios describe the price elasticity of supply and demand for a particular good.
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5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
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Q3. The general linear demand for good X is estimated to be Q = 25,000 - 80P-0.25M + 72P (6 Pts) where P is the price of good X, M is average income of consumers who buy good X, and P, is the price of related good R. The values of P, M, and P, are expected to be $100, $35,000, and $60, respectively. Use these values at this point on demand to make the following computations. a. Compute the...
34. The supply of waterfront property at Lake Chestermere is perfectly inelastic. If the population of Calgary and the surrounding areas decrease, this will result in? a. an increase in the equilibrium price only. b. a decrease in the equilibrium price only. c. an increase in the equilibrium quantity and a decrease in price. d. an increase in the equilibrium quantity with no increase in price. e. a decrease in equilibrium quantity and a decrease in price. 35. If a...
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