Price of X P1 P2 P3 | | Q1 Q2 Q3 Q4 Q5 Quantity of X O A. Q1Q2. O B. Q2Q4. O C. Q1Q5. O D. Q4Q5. Supply Demand FIGURE 3-3 Refer to Figure 3-3. At a price of P1 there would be excess demand equal to
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- If the price elasticity of demand is equal to infinity and the price were to rise, the quantity demanded would: O increase. O not change. O fall to zero. O decrease slightly. 21 ottv MacBook Pro F8 F9 F6 F7 000 F4 F5 F3 *Figure 4.2 P3 P2 P1 B A Q Q2 Q Q Qs Qe Q7 Refer to Figure 4.2. The demand curve E is most likely to represent the O demand for a particular brand of breakfast cercal. O demand for air conditioning during a hot summer. O demand for onc orchard's apples. market demand for whcat.When the price elasticity of demand is for the good is inelastic. Select one: O equal to infinity Ogreater than 1 O equal to 1 Obetween 1 and zero equal to zero demand
- - E P3 P2 P1 A Q1 Q Q2 Q3 Q, Q5 Qs Refer to Figure 4.2. The demand curve A has a price elasticity the smallest price change will cause consumcrs to change their consumption by a large amount. O the smallest price incrcase will cause consumers to switch to the producer with the lowest prices. O consumers can purchase any quantity they want regardless of the price. O there is no change in quantity demanded as the pricc changes.Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve is much more inelastic. The price elasticity of demand has decreased from:-5.76 to -2.70.”Before the campaign your price was $240 per pair of BBB Shorts. What should bethe new price? Please show calculations.4 If price of eggs increase by 10% and the demand elasticity of eggs is 0.3; then percentage change in quantity demanded of eggs should be #_______% Group of answer choices a 30 b 3 c 8 d 10
- The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.4. John Stain estimates that the demand curve for his PaneMaster insulated windows is given by 350-2P Q Currently, John is charging $150 per window, including installation. John is considering a sale. Find the price elasticity of demand for PaneMaster Windows and comment on the advisability of a sale. = a) EQp = -0.67 so the consequences of a sale cannot be determined b) Eqp = -0.67, so a sale would increase profits c) EQp = -6.00, so the consequences of a sale cannot be determined d) EQp = -6.00, so a sale would increase profits1.An auto rental company lowers the price of its rentals to increase its market share. The price cut increases quantity demandedbut total revenue decreases. This result suggests that over this price range, the demand for the auto rentals is elastic inelestic unit elastic. The cross elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to beMultiple Choicezeroa positive number.a small negative number.a large negative number. The law of supply indicates that the price-elasticity of supply coefficient would have a negative sign. TrueFalse
- Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.Suppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, and the cross- price elasticity of demand between it and good Yis-3. Determine how much the consumption of this good will change it Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 4 percent. percent b. The price of good Y increases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percentThe demand for a product is more elastic if the product represents a small portion of the individual's budget. O more elastic if it is over a short time horizon. O more elastic if there are many substitutes for product. O more elastic if there are few substitutes for product. E P tv MacBook Pro 30 F7 F8 F6 FS %24 & %2* 7