Suppose that the demand function is y=-3x + 54. A. What is the highest price a consumer would pay for the commodity? B. What is the quantity demanded if the commodity is offered for free?
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- The law of demand states that as product’s price increases, its quantity demanded decreases, assuming other factors remain constant or ‘ceteris paribus’. Why is it necessary to assume that other factors remain constant?A consumer buys two goods X and Y. Suppose price of Good X falls. What will be its effect on its demand? Give two reasonsThe law of demand states that, other things remaining the same, the higher the price of a good, theA) smaller is the demand for the good.B) smaller is the quantity of the good demanded.C) larger is the quantity of the good demanded.D) larger is the demand for the good.
- What does the concept of 'price elasticity of demand' in microeconomics measure? A) The responsiveness of the quantity demanded of a good to a change in the income of consumers. B) The change in demand when a good’s price remains constant. C) The responsiveness of the quantity demanded of a good to a change in its price. D) The responsiveness of a good’s supply to a change in its priceWhat is the law of demand and how does it explain consumer behavior in response to changes in the price of a good or service?Which one of the following statements is incorrect?A. A demand curve illustrates the quantities demanded at different prices, on the assumption that all other possible influences on the quantity demanded remain unchanged.B. There is an inverse relationship between the price of the product and the quantity demanded of that product.C. A conventional demand curve normally slopes downward from left to right.D. The inverse relationship between the price of a product and the quantity demanded is called the law of demand.E. We cannot analyse the demand for a product without considering the availability of the product.
- Suppose the demand for a product as a function of price is modeled by... GIve clear steps and explanations.What is one consumer food or service for which in the last 10 to 15 years consumers preference has actually increased, and still, the price has decreased. Based on all the supply and demand determinants, what is a possible reason that could cause the decrease in the price of the suggested good.Give typing answer with explanation and conclusion Suppose the cost of petrol is Rs. 100 per litre. There are two consumers who wish to purchase petrol for their cars: A and B. Consumer A goes to the petrol pump and asks for 10 litres of petrol. Consumer B goes to the petrol pump and asks for petrol worth Rs. 1000. (i) Find the equilibrium quantity demanded by each consumer. (ii) Draw the demand curves for each consumer. Are the two consumers identical? What is the price elasticity of demand for each consumer?
- Explain why you think that the demand of one product may diminish as prices are increasedFor a particular commodity, the demand function is q=100−5p. a. Find ε when p=5. ε=What might be the reason when quantity demanded has increased at every price? a.) Income has increased and this good is an inferior good. b.) The number of buyers in the market has decreased. c.) The price of a complement good has decreased.