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- If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.Suppose a straight-line downward-sloping demand curve shifts rightward. Is the price elasticity of demand higher, lower, or the same between any two prices on the new (higher) demand curve than on the old (lower) demand curve?Prove that price elasticity of demand is not the same as the slope of a demand curve.
- Given the inverse demand function: P = 60 - 34Q the price elasticity of demand can be expressed as: O(-4/3). (Q/P) (-3/4). (P/Q) O(-4/3). (Q/P) (-4/3). (P/Q) None of theseSuppose that daily demand for breakfast sandwiches at a local store is given by the following: Qd = 15-3P 3. As you can see, the price elasticity is different depending on the values of prices at which it is evaluated. For what price is the own price elasticity of demand one? In other words, for what price is demand unit elastic? 4. For what range of prices is demand elastic (\€ (EQ¹,p| > 1) ? For what range of prices is demand inelastic (¹.p< ?i. ii. iii. Suppose the demand function for a product is given by (3000-9 where p is in hundreds of RM and q is the number of tons. Determine the point elasticity of demand when the quantity demanded is 6 tons. is demand elastic, is it inelastic, or does it have unit elasticity at this point? Approximate the percentage change in price if the demand of 6 tons is decreased by 3%.
- 6. Consider the demand function: q = f(p) = 32 – p3 0The demand function for a new espresso drink at a popular coffee shop is given by 1/2 x = 0.4(81 – p )"2 where x is the quantity of drinks demanded every hour and p is the unit price in dollars per drink. (a) Evaluate the price elasticity of demand at 8 dollars per drink. Elasticity: (b) Complete the sentence: Because demand is ? the unit price should be ? the current $8 per drink in order to increase revenue. (c) At what price is the demand of unitary elasticity? dollarsDemand for carpet cleaner rentals at a rental store is described by the equation: Q = 4,000 - 500P, where Q denoted the number of carpet cleaner rental per week and P is the rental price in dollars. Determine the point price elasticity of demand at (1) P = $3 and (2) P = $4.5 and (3) comment on the change in elasticity. (4) Ignoring the previous parts, what is the appropriate price to set in order to maximize profit for a good with a marginal cost of $35 and a demand elasticity of -2?Suppose that daily demand for breakfast sandwiches at a local store is given by the following: Qd = 15-3P 1. What is the formula for the own price elasticity of demand as a function of price? In other words, please provide a formula for the price elasticity of demand where the only variable on the right- hand-side is price. 2. What is the price elasticity of demand for breakfast sandwiches at the price of 1, 2.5, 5.5, and 6, respectively: 3. As you can see, the price elasticity is different depending on the values of prices at which it is evaluated. For what price is the own price elasticity of demand one? In other words, for what price is demand unit elastic? 4. For what range of prices is demand elastic (EQ¹,p| > 1) ? For what range of prices is demand inelastic (€¹,p< ?Consider two demand functions:a) Q(p) = 50 – 10pb) Q(p) = 2/p.For each demand function, derive the elasticity of demand εD, and describe how |εD | changes (if it changes) as you move down the demand curve (i.e., as Q increases).For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at the indicated price. X=(-7/4)p + 23; p=8 E(8)=SEE MORE QUESTIONS