Changes in which of the following factors do NOT shift the demand curve? A) the number of buyers B) the price of the good C) buyers' incomes D) the price of a substitute good
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- Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A good's price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the most elastic demand? O Sports car O Amputation procedures for diabetes sufferers The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic demand, which is likely to have the least elastic demand, and which will have demand that falls in between.Based on income elasticity of demand, what type of good is cigarette?How does the number of sellers in the market increase?
- Prices are given according to the supply and demand quantities of a good. a) Graph the change in supply-demand quantities according to the price.b) Find the equilibrium price and the equilibrium amount.c) What is the demand price elasticity when the price increases from 6 TL to 8 TL? Evaluate the result.d) What would the income price elasticity be if the consumer income increased from 2500 TL to 3000 TL for the same range? What kind of goods is this good?e) What should the selling price be for the total revenue to be maximum? What will be the amount and maximum revenue at this selling price? Cost (TL/adet) Amount of demand (piece) Amount of supply (piece) 2 125 30 4 115 38 6 105 46 8 95 54 10 85 62 12 75 70 14 65 78 16 55 86 18 45 94 20 35 102Which will not cause a change in the demand for good X? A) a change in tastes B) a change in income C) a change in the price of good X D) a change in price of complementary product for good XThe effects of a decrease in quantity demanded on price for apple phone
- What might be the reason when quantity demanded has increased at every price? a.) Income has increased and this good is an inferior good. b.) The number of buyers in the market has decreased. c.) The price of a complement good has decreased.Relationship between changes in price and corresponding changes in quantity that consumers will demand is1. Using an example of your own, distinguish between shifts of demand and movements along a demand curve. 2.The following is a demand schedule for burgers for an individual. Plot the demand schedule. PRICE OF BURGERSQUANTITY DEMANDED5.0004.5014.0023.5033.0042.5052.0061.5071.0080.509 3. Consider the demand for burgers. If the price of a substitute good (for example, pizza) increases and the price of a complement good (for example, burger buns) increases, can you tell for sure what will happen to the demand for burgers? Why or why not? Illustrate your answer with a graph.
- If the quantity demanded of widgets drops by 10% in response to a 20% decrease in the price of gadgets: a. Widgets and gadgets are complements, with a cross-price elasticity of demand of -2. b. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 10. c. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 2. d. Widgets and gadgets are substitutes, with a cross-price elasticity of demand of 0.5. e. Widgets and gadgets are complements, with a cross-price elasticity of demand of -0.5.For a particular good, 10% increase in price causes a 5% decrease in quantity demanded. Which of the following statements is most likely applicable to this good? a. The good is a luxury b. The market for the good is broadly defined c. there are many close substitutes for this good d. The relevant time horizon is longThe demand for a good will be less price elastic, Select one: a. The larger is the percentage of income spent on it b. The higher is its price c. The smaller the supply of the good d. The fewer the substitutes available for the good e. The fewer there are complements for the good