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- Would you usually expect elasticity of demand or supply to be higher in the short run or in the long run? Why?5. Number the following supply curves from lowest to highest elasticity.Figure 5-17 0 18 5+ Price Supply Ob.2.16 004 Ⓒd.0.6 100 150 200 230 300 400 450 FREERD Refer to Figure 5-17. Using the midpoint method, what is the price elasticity of supply between point A and point B? Oa 1.67
- When Maha earned AED 17,000 per month, he used to spend 1,000 dirham a months in supermarket A. Now that he earns AED 28,000 per month, he spends 1200 dirham in supermarket A every month. A. Calculate income elasticity of demand B. What type of products do supermarket A sells according to your result in A? Explain.Figure 5-6 13 10 D 6 4 3 Supply 100 200 325 400 450 500 Refer to Figure 5-6. Using the midpoint method, what is the price elasticity of supply between points A and B? 0.1 0.43 2.33 1.0According to the table, using the midpoint method, what is the elasticity of supply from point A to point B? Price Quantity $2.25 125 $2.45 145 Select one: a. unit elastic and equal to 1 b. elastic and equal to 2.1 c. inelastic and equal to 0.57. O d. elastic and equal to 1.74 A,
- en hired as an economic consultant by Google and given the lollwrg derrand wedfor wh st Price of Good X (Millions) Quantity Demanded for XQuantity Demanded ta (Millions) 260 240 5. Y Mllions) 200 220 240 10 15 220 20 200 260 Your advice is needed on the following questions: A) Draw the demand and supply curves for the above market. (4 marks) B) Calculate the price elasticity of demand for software X if the price of soltware X increases tom5 millen to 10 mil p t S whether it is elastic or inelastic.(4 marks) C) Calculate the cross elasticity of demand of software Y when the price of X falls from 20 milion lo 10 Mlion hdie between X and Y. (4 marks) D) Draw diagrams for the demand of X. If other things are not constant what will be the impact on the dend D E) Calculate the equilibrium price and quantity demanded and supply of the above market Label the equilm prt be quantity, and the equilibrium price. (4 marks) O Type here to searchSupply Curve A $8.00 $10.00 750 Supply Curve B Osupply curve C Price Quantity 450 Supplied Refer to the Table. Which of the three supply curves represents perfectly elastic supply? $8.00 750 Supply Curve C $12.00 $14.00 450 750 $10.00 1050 None of the three supply curves represents perfectly elastic supply. O supply curve A O supply curve BAlex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $80,000 to $40,000 per fire engine. Note that while Alex gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. RICE (Thousands of dollars per fire engine) 78°F Sunny 200 180 F1 160 140 120 100 80 60 40 F2 -0- F3 0+ F4 Demand F5 Revenue Lost Revenue Gained OL…
- . The supply of lettuce in the short run will be ________ than the supply in the long run and ________ than the supply today. a. less elastic; less elastic b. more elastic; more elastic c. less elastic; more elastic d. more elastic; less elasticMcdonald's, a big burger joint, is charging $5 for its very famous Big Mac hamburger and selling around 20 milion Big Mac in a year in Singapore. a. Suppose Mcdonald's increases the price of its Big Mac to $6 and still manages to sell the same quantity of the Big Mac. How much revenue will Mcdonald's gain? What can you infer about the price elasticity of demand (PED) For Mcdonald's Big Mac? Assume in an alternative scenario, the increase in the price of Big Mac to $6 reduces its quantity sold to 18 million. How much revenue will Mcdonalds gain now? What can you conclude about the PED now? b. Given the two scenarios presented in part a which one do you think is more likely and why? C. Suppose Mcdonds's Big Mac and movie tickets have negative cross price elasticity of 15. What does this number tell us on the relationship between the Big Mac and movie tickets? Suppose. The Golden Vilage (GV), Singapore's leading cinema exhibitor, decides to increase the price of its movie tickets by 10%.…Consider a competitive market for which quantities demanded and supplied at various prices provided below Unit Price Demand Supply A 60 22,000 14,000 B 80 20,000 16,000 C 100 18,000 18,000 D 120 16,000 20,000 E 140 14,000 22,000 1.Calculate the price elasticity of demand when the price is at $80 2.Calcualte the the price elasticity of supply when the price is at 120 3.If the price is set at 70 what is the execss demand and supply 4.If the price is set at 130 what is the execss demand and supply Only the sub part number 4