Assume the following demand function for cigarettes: In Qa=1.0-0.5 In Pc- 0.2 ln P₁+ 0.75 In Y + & where: In = natural logarithm, Qa= quantity demanded of cigarettes (packs), P.= price of cigarette (Php/pack), P₁= price of alcohol (PhP/liter), Y = income (PhP), and ε = error term
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Based on income elasticity of demand, what type of good is cigarette?
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- The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price ($) 395 325 Sales (millions) 741 1,133 (a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand). q(p) = Use your demand equation to predict sales if the price is lowered to $255. million phones (b) Fill in the blank. For every $1 increase in price, sales of this type of cell phone decrease by million units.Suppose consumers will demand 40 units of product when the price is $12 and 25 units when the price is $18 each. Please detailed workin. Find a linear equation for the: (i). Demand curve. (ii). Demand function. (b). Find the price per unit when 30 units are demanded.Suppose the demand function for product X is estimated by the equation: QDX= -2PX + 0,5PY - 0,2PZ + 1,2I. In there:QDX is the quantity demanded of product XPX is the price of product XPY is the price of product YPZ is the price of product ZI is the average income of consumersa/ Please make an argument to determine the relationship between two products X and Y, X and Z.b/ Please make an argument to determine whether product X is an ordinary good or a low-end good
- 2) (20) Demand for widgets is a linear function of price. If the price of Widgets is set to $20, 4200 widgets will be sold. If the price is raised to $25, demand falls to 3600 widgets. a) (4) Find the demand function D(x), where x represents the price and D(x)= y represents the demand for widgets. b) (2) Describe the meaning of the slope of the demand function, in the context of the price, and demand for widgets. c) (2) Find the revenue function R(x), which is price times the demand. (2) Graph the Revenue Function using Desmos, or any other graphing utility of your choice; note the scale on the axes. If your graph doesn't fit on the graph, your Revenue function is probably incorrect. Hint Ask Questions! Email! 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 y -5 20 25 30 35 40 45 50 55 60 65 e) (2) Give the meaningful domain for the revenue function. Use the criteria that one would not price widgets so low that one would pay to get rid of them. 5 10 15 (2)Calculate the…1. Suppose consumers will demand 40 units of product when the price is $12 and 25 units when the price is $18 each. 6). Find a linear equation for the: 0. Demand curve. (ii). Demand function. (b). Find the price per unit when 30 units are demanded. 2 The demand Curve for a prodtuct is p= 60-0.00OSC where p iE the price per unit. and q is the number of units demancec. How many units must be sold to achieve sales of $1.200,000?When sold for $790.00, a certain desktop has an annual supply of 129.5 million computers and an annual demand of 155.5 million computers. When the price increases to $865.00, the annual supply increases to 147.5 million computers, and the demand drops to 134.5 million computers. NOTE: Round slope and vertical intercept to 4 decimal places and use those rounded values to the end. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equation p = Demand Equation p = esc (Note: The equations should be in the form p = mq + b where p denotes the price (in dollars) and q denotes the quantity (in billions). The slope and y-intercept should be accurate to 4 decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p = Equilibrium quantity q = 9- F2 A (Note: The equilibrium price should be accurate to 2 decimal places and quantity should be rounded to the nearest whole number, and the equilibrium price should include a…
- The demand equation for a particular candy bar is px + x + 20p = 3000 where 1000x candy bars are demanded per week when p dollars is the price per bar. If the current price of the candy is 49 dollars per bar and the price per bar is increasing at the rate of 0.2 dollars each week, find the rate of change in the demand.The following table shows worldwide sales of a certain type of cell phone and their average selling prices in 2012 and 2013. Year 2012 2013 Selling Price ($) Sales (millions) 928 1,144 375 335 (a) Use the data to obtain a linear demand function for this type of cell phone. (Let p be the price, and let q be the demand). q(p): -5.4p + 3185 X Use your demand equation to predict sales if the price is lowered to $255. 1808 x million phones (b) Fill in the blank. For every $1 increase in price, sales of this type of cell phone decrease by 5.4 million units.The demand equation for a certain brand of pencil is 100y? + 9t2 = 3600 where (y) represents the number (in thousands) of ten-packs demanded each week when the unit price is $(t). How fast is the quantity demanded increasing when the unit price per ten-pack is $14 and the selling price is dropping at the rate of $0.15 per ten-pack per week?
- The demand equation for a particular candy bar is px + x + 20p = 3000 where 1000x candy bars are demanded per week when p cents is the price per bar. If the current price of the candy is 49 cents per bar and the price per bar is increasing at the rate of 0.2 cents each week, find the rate of change in the demand.Completely analyze the following demand equation for Suzuki cars: Qx = 5.2 -0.62Px - 1.08Py + 0.781 (2.44) (-2.63) (2.79) (4.96) n = 55; R² = 0.926; figures in brackets are t'statistics Where: Qx = quantity of Suzuki cars demanded. Px = price of Suzuki cars. Py = price of fuel. I = disposable income.Subpart to be solved 1. Consider the following: If the price per unit of good A is P200 quantity purchased isvalued at 1,500 units. If price changes (increase or decrease) by P1, quantity demandedchanges (decreases or increases) by 4 units.A. Determine the demand function expressed as a price function. B. Set up a demand schedule for this function and determine the price elasticity ofdemand at various P and Qd combinations using point-price elasticity formula.(Make sure that all elasticity concepts are found on the same demand curve.) C. Determine the TR and MR functions.D. Graph the demand curve and the TR curve (TR curve just below the demand curve)E. At what P and Qd combination will TR be maximum?