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Suppose we know that the price
is −1.5. If a grocer decreases the price of organic carrots by 12%,
what would we expect to happen to the quantity of organic carrots
purchased?
(a) Decrease by 18%
(b) Decrease by 6%
(c) Increase by 6%
(d) Increase by 8%
(e) Increase by 18%
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- (a) Define Price Elasticity of Demand. What are the 3 Types of Price Elasticity of Demand?(b) Calculate the Price Elasticity of Demand from the graph.(c) Depending on the elasticity, what kind of good does the given graph show? ExplainSuppose price elasticity of demand is greater than 1. Which of the following example is correct? (a) If I increase price of oranges by 1%, sales of oranges increase by more than 1%. (b) If I increase price of oranges by 1%, sales of oranges decline by less than 1%. (c) If I increase price of oranges by 1%, sales of oranges increase by less than 1%. (d) If I increase price of oranges by 1%, sales of oranges decline by more than 1%. Consider the following table: Table 2.7 Market Size and Average Winning Percentage in the National Basketball Association: 2004-05 to 2015-16 Variable Market size Coefficient -0.0021 t-Statistic -0.67 (a) Market size impacts average winning percentage negatively and it is statistically sig nificant. (b) Market size impacts average winning percentage negatively but it is statistically in- significant. (c) Average winning percentage is positively correlated with market size and statistically significant. (d) Market size impacts average winning percentage…A business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increaseby 3000 units for each Tk.4.50 reduction in price.(i) Construct the demand equation(ii) What is the highest price to be paid for this product?(iii) What is the highest quantity demanded for this product?(iv) How many units will be bought if the price is Tk.100 per unit?(v) What is the price per unit if 40,000 units were demanded?(vi) Sketch the graph of the demand equation. You have to solve only iv,v and vi.
- (A) Define the price elasticity of demand (B) Calculate the price elasticity of demand given that price rise by 10% and demand falls by 4% Please be quickA business sells 30,000 units each month at a price of Tk.150 each. It is projected that monthly sales will increaseby 3000 units for each Tk.4.50 reduction in price.(i) Construct the demand equation(ii) What is the highest price to be paid for this product?(iii) What is the highest quantity demanded for this product?(iv) How many units will be bought if the price is Tk.100 per unit?(v) What is the price per unit if 40,000 units were demanded?(vi) Sketch the graph of the demand equation.What is the state of elasticity of demand if it has demand curve that is parallel to horizontal axis and it as a horizontal demand curve? (a) Zero (b) Infinite (c) Equal to one (d) Greater than zero but less than infinity
- Suppose John, the owner-manager of a local hotel, projects the following demand for his rooms: Price ($) Quantity Purchased (per Night) Total Revenue 90 100 110 90 130 70 (a)Calculate the price elasticity of demand between $90 and $110. (Use the midpoint formula) (b)Is the price elasticity of demand between $90 and $110 elastic, unit elastic, or inelastic? (c)Will John’s total revenue rise if he increases the price from $90 to $110?…6. Best Buy sells Q units of áat-screen TVs each year. Best Buy executives also know that the price elasticity of demand for áat-screen TVs is eQ;P = 1:5. They propose a 20% reduction in the price of áat-screen TVs claiming that total revenue (a) will increase by 15%. (b) will increase by 30%. (c) will increase by 3:5%. (d) will decrease by 30%. (e) will increas-x 230. If the demand Curve is the form of P= 10e ? where P is the price and x is the demand, what is the Price elasticity of Demand? (a) Kx (b) 는 (c) 5x (d) None
- Which of the following is/are correct? (i) If price elasticity of demand = 0, total revenue is maximised (ii) (111) If income elasticity of demand is -1.5 then an increase in income of 12% results in a fall in quantity demanded by 18% and the good is inferior. Price elasticity of demand is constant for a demand curve with constant slope. (iv) Pepsi and coke are likely to have a positive cross price elasticity of demand O A. Only (ii) and (iv) are correct. OB. Only (ii) is correct. OC. None of the above are correct. O D. Only (i) is correct. OE. Only (i) and (iii) are correct.(a)Diagrammatically show and explain how oil prices dropped as concerns over fuel demand in the near term in COVID-19 pandemic hit Europe and the United States. (b)Diagrammatically show and explain what happened to the oil market if the price remained unchanged despite the concerns over the fuel demand. (c)You sell two different goods: printers and toner cartridges. The price elasticity of demand for the printers is -3.4, and you earn a revenue of RM15,000 per month from the good. You earn a revenue of RM5,000 per month from the toner cartridges. The cross price elasticity of demand for both of the goods is -2.5. If you decide to decrease the price of the printers by 5%, calculate your new total revenues for…Price per unit (Rs.) Quantity demanded (000) 6. Iator 9. 4 15 20 When price falls from Rs. 5 to Rs. 4, elasticity of demand can be expressed numerically as- (A) 1.0 (B) 2.5 (D) 3.75 (C) 3.3 3.
