i need Q5 solution 5. Stagecoachsells 86000Guildford day ticketsevery monthat a price of £8. The price elasticity of demand of daytickets is estimated in -0.7. Stagecoach is consideringincreasing the day tickets price from £8 to £10.Calculate how this change in price will affect thedemand. Provide your answer as percentage change.You are required to show your workings and explainyour answer · The government of a small country is considering theintroduction of a unit subsidy on the production of organicmeat as its consumption has been proved to have healthbenefits. The effect following the introduction of the tax isshown in the graph below.Price per pound of organic meat£28S1£24£20£17DQuantity of pounds oforganic meat8,20010,50022,000

Price elasticity of demand : Ed= percenatge change in quantity demanded percentage change in price…

5. Stagecoachsells 86000Guildford day ticketsevery month at a price of £8. The price elasticity of demand of day tickets is estimated in -0.7. Stagecoach is considering increasing the day tickets price from £8 to £10. Calculate how this change in price will affect the demand. Provide your answer as percentage change. You are required to show your workings and explain your answer ·

5. Stagecoachsells 86000Guildford day ticketsevery month at a price of £8. The price elasticity of demand of day tickets is estimated in -0.7. Stagecoach is considering increasing the day tickets price from £8 to £10. Calculate how this change in price will affect the demand. Provide your answer as percentage change. You are required to show your workings and explain your answer ·

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 30CTQ: In a market where the supply curve is perfectly inelastic how does an excise tax affect the price...

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In a market where the supply curve is perfectly inelastic how does an excise tax affect the price paid by consumers and the quantity bought and sold?
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