A price floor of P1 causes: b Question 11 Homework. Unanswered Due Apr 14th, 11:59 PM C d Price P₁ P₂ P3 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Excess demand equal to the distance AB. Excess supply equal to the distance AB. Excess supply equal to the distance DE. OS Excess demand equal to the distance DE. B ......... Quantity
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- Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demandCreative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demandIn Class, 10–25 Minutes for Teams For each of thefollowing products, determine at least three differentprices that might be charged. Then survey each of theindividuals within your group to find out how much ofeach product they would buy at each price point foreach of the products. For each product, calculate theprice elasticity of demand to determine whether thedemand is elastic or inelastic.a. Cheese pizzas per monthb. Movie tickets per monthc. Concert tickets per year
- Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve is much more inelastic. The price elasticity of demand has decreased from:-5.76 to -2.70.”Before the campaign your price was $240 per pair of BBB Shorts. What should bethe new price? Please show calculations.Excess supply of a product will cause the price to As a consequence Market for pizza of the price change, the quantity demanded will quantity 14.00- 13.00- 12.00- 11.00- supplied will increase decrease At the current market price PMatet of $9.00, there i of thousand pizzas per month (Enter your response as a positive integer.) 10.00- 9.00- PMarket a 8.00- * 700- 8 6.00- E 500- 4.00- 3.00- 2.00- 1.00- 40 22 510 15 20 25 30 35 40 45 so 55 60 Thousands of pizzas per month 0.00-The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.
- Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.en hired as an economic consultant by Google and given the lollwrg derrand wedfor wh st Price of Good X (Millions) Quantity Demanded for XQuantity Demanded ta (Millions) 260 240 5. Y Mllions) 200 220 240 10 15 220 20 200 260 Your advice is needed on the following questions: A) Draw the demand and supply curves for the above market. (4 marks) B) Calculate the price elasticity of demand for software X if the price of soltware X increases tom5 millen to 10 mil p t S whether it is elastic or inelastic.(4 marks) C) Calculate the cross elasticity of demand of software Y when the price of X falls from 20 milion lo 10 Mlion hdie between X and Y. (4 marks) D) Draw diagrams for the demand of X. If other things are not constant what will be the impact on the dend D E) Calculate the equilibrium price and quantity demanded and supply of the above market Label the equilm prt be quantity, and the equilibrium price. (4 marks) O Type here to searchIf the local electr icity ulilily wanls loraiserevenues. il should ils price because demand for clectricity is likcly to be Iower; inelastic ralse; elastic raise; pertectly inelastir raise; inelastic
- Insert Draw Design Layout References Mailings Review View Table Design Layout O Tell me e Share Calibri 10.5 Aa v AaßbCcDdEe AaBbCcDdEe AaBbCcDc B I U. v A - ev A Heading 1 ce Normal No Spacing Styles Pane ab x, x Dictate Sensitiviti the Law of Demand. Also note that some values are already filled in. Do not adjust the numbers already given. s) Supply Schedule Take whatever value of Quantity Demanded you have at Price = $40 and use that same value for Quantity Supplied at Price = $40. Fill in values for Quantity Supplied at $50, $30, and $20 that make sense from what you understand about the Law of Supply. 中 Price Quantity Demanded (Qd) Quantity Supplied (Qs) 55 $60 $50 $40 $30 $20 35 $10 Qe = ) What is the equilibrium price and quantity in your market? Pe = aly2 How much? If the price was free to move, wha ou anticipate - s there excess demoopbox Format Tools Add-ons Help Last edit was seconds ago BIUA 三三三三 1三ニ Normal text Calibri 11 1. 3 4 6 I 7r Demand Shifters: 5-14 The Demand for Beef. For each scenario draw a general demand curve and label it D. Then shift the curve to the left or the right depending on what will happen to the demand for beef. Draw an arrow showing direction and label your new curve D1. Then tell me the determinant of demand that shifted the curve. For example, consumer income increases or population decreases. Hint: There is one that is a change in quantity demanded and the curve will not shift, there will just be movement along the curve. 5. Millions of immigrants swell to U.S. population 6. Pork prices drop 7. Surgeon general warns that eating beef can be hazardous to health prd 8. Take home pay for Americans drops 3 month in a row 2.Σ %24 II between point A and point B, using the midpoint method, is - Bing The Learning Exchange 2021 English (en) b bing.com Anto Question 5 Figure 37 Not yet answered Price $20- Marked out of 18- 16. P Flag question トャエ 12 B. 10- ト8 6. 21 200 000 009 008 37. Refer to Figure 37. The price elasticity of demand between point A and point B, using the midpoint method, SI Select one: O b. 2. O c. 2.5. O d. 1.5. CDツ 30/11/2021 ud gr-8 24°C Mostly cloudy A Type here to search dp 144 91 24 esc & $4 4. %23 3. >1 tab H. caps lock shift T alt AM eam Stream ShaA gle cha