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- The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is a. price elastic. b. price inelastic. c. unit elastic with respect to price. d. perfectly inelastic.Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less popcorn. What does this tell you about the price elasticity of demand? What will happen to total revenue as a result of the price increase?
- Consider the following. Demand Function 162 +2 elastic P= Find the price elasticity of demand for the demand function at the indicated x-value. Inelastic Quantity Demanded X= 7 Is the demand elastic, inelastic, or of unit elasticity at the indicated x-value? The demand is elastic at this x-value. O The demand is inelastic at this x-value. O The demand is of unit elasticity at this x-value. Use a graphing utility to graph the revenue function. Identify the intervals of elasticity and inelasticity. (Enter your answer using interval notation.)If Park's Place Pizza increase the price of pizza by 25% and total revenues remained the same, it can be concluded that the product had an elastic demand. an inelastic demand. no substitutes. an elasticity of demand value of 0. O a unitary elastic demand. If the price of a bobblehead increases and the quantity demanded of a bobblehead decreases, what can we therefore conclude? * O The demand for bobbleheads is consistent with the law of demand. O The demand for bobbleheads does not respond to price changes. O The demand for bobbleheads is elastic. O The demand for bobbleheads is inelastic. O The demand for bobbleheads is unit elastic.Graph the accompanying demand data,and then use mid point formula for Ed to determine price elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a nontechnical way why demand is elastic in the northwest segment of the demand and inelastic in the southwest. Product price. Quantity demanded $5. 1 4. 2 3. 3 2. 4 1. 5
- Consider the following. Demand Function Quantity Demanded 242 p = + 2 x = 3 x² Find the price elasticity of demand for the demand function at the indicated x-value. Is the demand elastic, inelastic, or of unit elasticity at the indicated x-value? O The demand is elastic at this x-value. D The demand is inelastic at this x-value. O The demand is of unit elasticity at this x-value. Use a graphing utility to graph the revenue function. Identify the intervals of elasticity and inelasticity. (Enter your answer using interval notation.) elastic inelasticAssume that the demand curve is a straight line. If the price per unit of a good rises from $6 to X1, it is expected that monthly demand will fall from X2 units to 1,000,000 units. Give your own appropriate X1 and X2. What is the point price elasticity of demand when the price is $6? What is the arc price elasticity of demand over these ranges of price and output? Is the demand for this good price sensitive?Suppose Via Rail asked government authorities for permission to increase its commuter rates by 20 percent. The railroad argued that declining revenues made this rate increase essential. Opponents of the rate increase contended that the railroad's revenues would fall because of the rate hike. It can be concluded that: both groups felt that the demand was elastic but for different reasons. both groups felt that the demand was inelastic but for different reasons. the railroad felt that the demand for passenger service was inelastic and opponents of the rate increase felt it was elastic. the railroad felt that the demand for passenger service was elastic and opponents of the rate increase felt it was inelastic.
- Suppose you plan to increase the price for your spooky haunted house hayrides from $25 to $35.As a result, you expect that ticket sales will fall from 1,100 tickets to 900 tickets. a. Based upon the information above, calculate the own price elasticity of demand andcharacterize demand as being elastic or inelastic. b. Based upon your answer in part (a) above, would you expect the increase in price to increase ordecrease revenues? What about profits? Explain.True of False (explain why) Increasing in the apple price by 40% led to an decrease in the quantity of apple demanded by 60%, then the elasticity of demand is an inelastic type.A company increases the price of its product from $ 210 to $ 240 per unit and keeps 30,500 units of this product in stock each month . Is elasticity elastic, inelastic, perfectly inelastic, or unitary? Why? Please indicate which could be an example of this product. Why?