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- Which would be more price elastic, the demand for Netflix online streaming or the demand for online movie rentals in general?10. An elasticity is used as a measure of a)the size of a shortage or surplus b)the slope of a curve c)how strong a relation is d)how efficienty the economic is operatingBased on income elasticity of demand, what type of good is tilapia? How is milkfish related to tilapia?
- Suppose the price elasticity of demand for a good is – 0.2. If there is a 6% increase in theprice of the good, by what percentage will the demand for the good go down?If the demand equation is find the consumer’s surplus when the consumer purchases 18 units. What is the revenue of the seller?Suppose a firm sells two goods, Good A and Good B. Use the following information to answer questions that follow:Profit maximising price of Good A = R200Profit maximising price of Good B = R75MC at Q* of Good A = R120Total revenue of Good A = R26000Total revenue of Good B = R24000Rothschild index of Good B = 0.4Price elasticity of the market demand for Good B = -2 2.1. Calculate each of the following:Ed of Good A = ____________Ed of Good B =__________MC at Q* of Good B = R___________ 2.2 Suppose that the firm noticed that when it increased the price of Good A from R200 to R300, the sales of Good B decreased from 1000 to 600 units. Calculate and classify the cross-price elasticity of demand between Good A and Good B.Ec =____________Good A and Good B are classified as (substitutes/compliments) 2.3. Use the elasticity coefficient calculated above and the information provided, to calculate by how much the firm’s total combined revenue will change if it decreases the price of Good A by…
- Timmy is selling his toy dinos again. The consumer demand curve for thedinos is given by: x=(50-3p)^2 where p is the price per dino, and x is the demand in weekly sales. a.) Find the Elasticity of Demand function E(p) and evaluate it at the price p = $5.Is the demand elastic, inelastic, or does it have unit elasticity? Explain what this means inyour own words. b.) Find the price Timmy needs to charge for his dinos in order to maximize revenue.(Round your answer to the nearest cent.)Due to the COVID-19, the price of hand-sanitizer increases from 150 taka to 250 taka. In response, the quantity demanded declines from 20 units to 15 units.(a) Calculate the price elasticity of demand. (b) Explain if the demand is elastic or inelastic. Based on the elasticity, what change (increase, decrease, or keep it the same) in price the seller can do to maximize his total revenue? Explain your answer. Please answer Step by step. Answer must be correct.Do all calculation step by step.Don,t copy from any where. Must answer follow question.Based on income elasticity of demand, what type of good is cigarette?
- The equation for a demand curve is P = 2/Q. What is the elasticity of demand as price falls from 5 to 4? Whatistheelasticityofdemandasthepricefallsfrom9 to 8? Would you expect these answers to be the same?Please no written by hand and no emage A bakery works out a demand function for its chocolate chip cookies and finds it to be q= D(X)=655-12x, where is the quantity of cookies sold when the price per cookie, in cents, is x. Use this information to answer parts a) through f). Find the elasticity. E(x)= __ Part 2 b) At what price is the elasticity of demand equal to 1? __¢ (Round to the nearest cent as needed.) Part 3 c) At what prices is the elasticity of demand elastic? A. Greater than 27¢ B. Prices cannot be elastic in this case C. Less than 27¢ D. Prices are elastic at all values. Part 4 d) At what prices is the elasticity of demand inelastic? A. Less than 27¢ B. Prices are inelastic at all values C. Greater than 27¢ D. Prices cannot be inelastic in this case Part 5 e) At what price is the revenue a maximum? x= __ ¢ (Round to the nearest cent as needed. Use a comma to separate answers as needed.) Part 6 f) At a price of 22¢ per cookie, will a small increase…The above figure shows the demand curve for crude oil. If the market price is $10 abarrel, what is the price elasticity of demand?