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- Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price?Why is the supply curve with constant unitary elasticity a straight line?In 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
- 1. Cikli is the manager of a per month from product Y. The price elasticity c original quantity (Q) fo respectively and the cro product X and Y is 1.1. I 1%. toantalan bargg pern a. How much will Cikli's b. How much is Cikli'sne c. Plot a graph for produc the before and after changRefer to the figure below: A P 16 11 8. 100 150 225 300 350 Quantity If the price is $16, the resulting O shortage will lead to a fall in price. O surplus will lead to a fall in price. O shortage will lead to a rise in price. O surplus wil Icad to a risc in pricc. を %24en 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 search
- Demand is inelasic over partiularpricechange range if a. the change in price causes no change in total revenue O b. the change in pric cuses oal revenue to change in he same direction O c the change in prce causes oalrevenueto change in the oposie drecion O d. Tick queston: Demand is never inelasic over any pric-change range.Which of the following statements about the relationship between the price elasticity of demand and revenue is TRUE a. If demand is price inelastic, then increasing price will decrease revenue O b. If demand is price elastic, then decreasing price will increase revenue OC. If demand is perfectly inelastic, then revenue is the same at any price Od. Elasticity is constant along a linear demand curve and so is revenuemonthly dearmad schedule for a good in a cucocly Semonth. Tires ara no marginal costs. The table below shows the monthly demand schedule for a good in a dinne $4.800 of fixed costs per month. There are no marginal costs. Quantity 400 Price ($) 30 TR ($) MR ($) 12,000 3,000 688 25 15,000 • 1,000 800 20 16,000 -1,000 1,000 15 15,000 -3,000 1,286 10 12,000 -5,000 1,400 5 7,000 -7,000 1,688 0 0 Instructions: Enter your answers to the nearest whole number ce, the monthly profit for each a. If they evenly split the quantity a monopolist would produce, the mantly s If duopolist A decides to increase production by 200 units, the monthly p
- The price elasticity of demand for a product is estimated to be -2.3. At the initial price of $20, the quantity demanded was 10 units. If the firm increases theprice to $22.50, quantity demanded is expected tobyO A. decrease: 28.75%6O B. increase; 12.596O C. decrease: 18.75%O D. increase: 17.2596point a,b,c,d,e in total revenue, which points will decrease and which will be infinty. TABLE 5-3 Ano change Point D. E Elasticity 1.25 0.3 1.0 0.2 2.1 Refer to Table 5-3. At what points would a priceincrease be accompanied by anincreasein total revenue? EdWhy do many Carmex product prices end in 9?What type of pricing is this called? What shouldhappen to demand when this approach is used?SEE MORE QUESTIONS
