You are the curator of a museum. It is running short of funds, so you decide to increase revenue. When should you raise the admission price in order to increase revenue? Always Only when demand is elastic Only when demand is inelastic
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- Prove that price elasticity of demand is not the same as the slope of a demand curve.If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?You were gifted a box of 50 thermos bottles that you do not need and you plan to sell them on Ebay. You were initially thinking of asking for $20 per bottle, but then you found out that demand is elastic at $20. Should you lower your asking price? Yes, because when demand is elastic, a lower price increases revenue. Yes, because when demand is inelastic, a lower price increases revenue. No, because when demand is inelastic, a lower price increases revenue. No, because when demand is elastic, a higher price increases revenue.
- Studies have fixed the short-run price elasticity of demand for HPV vaccines at -0.25 . Suppose that transportation issues lead to a sudden cutoff of vaccine supplies. As a result, supplies of HPV vaccines drop 20 percent. a. If HPV vaccines were selling for 130 dollar per dose before the cutoff, how much of a price increase would you expect to see in the coming months? b. Suppose that the government imposes a price ceiling on HPV vaccines at 130 dollar per dose. How would the relationship between vaccine recipients and hospital/clinic owners change?supposed you learned that the price elasticity of demand for good x is 0.7 between the current price for good x and a price of rm2 higher per unit. do you think sellers collectively will try to the supply of good x and drive the price up rm2 higher per unit? explain your answer. assuming that they will try to reduce the supply, what problems might they have in actually doing so?instead of a decrease and it was an increase instead of a decrease; would that mean that the demand would increase and will result in a increase in demand for electric guitars?
- Which price elasticity of demand values or range of values do we see most frequently in the real world?3. Instead of assuming a linear demand curve, suppose we assume that demand is char- acterized by the following demand function q = 13.572P-1.5Demand for GPS Units 220 200 180- 160 - 140- 120- 100 80 60 40- 20- 40 60 120 160 200 240 260 320 360 400 440 Quantity (GPS units) Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. a. When going from a price of $120 per unit to a price of $100 per unit, what is the price elasticity of demand for GPS units? b. When going from a price of $100 per unit to a price of $120 per unit, what is the price elasticity of demand for GPS units? c. Using the midpoint formula, what is the midpoint price elasticity of demand for GPS units between a price of $120 per unit and a price of $100 per unit? d. When going from a price of $60 per unit to a price of $40 per unit, what is the price elasticity of demand for GPS units? e. When going from a price of $40 per unit to a price of $60 per unit, what is the price elasticity of demand for GPS units? t Using the midpoint formula, what is the…
- The demand for ceiling fans can be modeled as D(p) = 25.02(0.992) thousand ceiling fans where p is the price (in dollars) of a ceiling fan. (a) Locate the point of unit elasticity. (Round your answers to two decimal places.) The point of elasticity occurs when p = $ and D(p) = thousand ceiling fans. (b) For what prices is demand elastic? For what prices is demand inelastic? (Round your numerical answers to two decimal places.) Demand is inelastic for < p < Demand is elastic for p ? ✓When the price of a good is lowered from £350 to £200 the quantity demanded increasesfrom 600 to 750 units. Calculate elasticity of demand over this section of its demandschedule.If the demand for the product/service you are selling is inelastic, would you increase the price? Why or why not?
