Volkswagen’s reputation among car buyers was shattered when the public discovered it was cheating on its emissions checks. What happened to equilibrium prices and quantities in the market for Volkswagen after this scandal? The equilibrium price
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- Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?Suppose that the demand for lawn fertilizer can be expressed as QD = 5000 - 120P and that the supply of lawn fertilizer can be expressed as QS = 1000 + 80P where Q is measured in thousands of tons per year and P is measured in dollars per thousand tons. What is the price elasticity of demand when the market is in equilibrium?Explain three reasons why the demand for water from this company might fall.
- Online the timing and tailoring of prices to specific products is the key to successful pricing in online markets. And " Thanks to the ready availability of data in online markets, a pricing manager can easily approximate the elasticity of demands for the different products it sells online." Assuming a 10 percent decrease in price increases sales by 30 percent, calculate the price elasticity of demand? If the wholesale price of the online product is $50 and sells at a price comparison site that charges $0.50 per click and boasts a conversation rate of 5 percent ( an average of 20 percent clicks are needed to generate sale), the incremental cost of each sale is $50. What price should you change for the product? What is the markup? B) . The authors assert that price sensitivity is affected by (1) product cycle, and (2) number of competitors. In fact, " When the number of competing sellers doubles, a firm's elasticity of demand is expected to double ( you should be able to verify this…Gasoline & Politics In the spring of 2008, Senators John McCain and Hillary Clinton (who were then running for president) proposed a temporary elimination of the federal gasoline tax, effective only during the summer of 2008, in order to help consumers deal with high gasoline prices. Assume that during the summer, when gasoline demand is high because of vacation driving, gasoline refiners are operating at full capacity. What does this assumption suggest about the price elasticity of supply? In light of your answer to the previous question, whom do you predict would benefit from the temporary gas tax holiday?Current tuition at Benedict College is around $24, 000 a year. Show what would likely happen to demand for educational services at the school if tuition went up to $40, 000 a year. The Ford F-150 (best selling vehicle in the U.S. for the last three decades) is currently priced at about $40, 000 to $45, 000. Show what would likely happen to the amount of vehicles offered for sale if the vehicle price went up to $52, 000. You have four kids at home and they are somewhat clumsy and spill a lot of milk and other drinks. While at DG you compare some paper towels options. The first option is a roll of towels that contains 43 sq. ft. of paper at a price of $1.75. The second option contains 67.3 sq. ft. of paper at $2.00. Which is the better choice? One of the problems with K-12 education in the U. S. is that there are not enough men (especially men of color) within the classrooms. The rational is that the salaries are too low. Show what…
- True or False: Suppose you are advising the Dairy Farmers of Canada on changes in the milk market. Suppose the current price is $4.5 per gallon of milk and the quantity demanded is 2.5 million gallons of milk per day. Suppose price elasticity of demand is constant at 0.7. You are considering reducing the supply, so that the price rises to $5 per gallon. Total expenditure on milk by consumers will rise.Coca Cola - Be sure to evaluate the non-price determinants of demand in this section. Which factors have an impact on consumer responsiveness to changes in the price of your company’s goods and/or services? Would you consider the company’s goods and/or services to be price elastic or price inelastic? Why? Tip: How to insert a graph into your presentation. You can either right-click to save an image to your hard drive and then import it into the PowerPoint presentation or take a screenshot of the browser window and paste that image into PowerPoint. Be sure to cite the source(s) from which the information is based. Recall: The Non-price determinants of demand Consumer tastes and preferences Consumer income (normal or inferior good?) Expected future consumer income Market population and demographics Expected future prices of the goodsWHAT COULD EXPLAIN THE SIMULTANEOUS INCREASES IN THE PRICES OF LITHIUM AND THE PRODUCTION OF LITHIUM? HOW CAN SUPPLY AND DEMAND CURVE OR A SHIFT IN THE SUPPLY CURVE LEAD TO THIS RESULT?
- Pharmaceutical drugs have an inelastic demand and computers have an elastic demand. suppose that technological advance doubles the supply of both product. what happens to the equilibrium price and quantity in each market?Beachfront resorts have an inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was). What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in price?Suppose you are advising an industry association on the predicted effects of a price change on quantity demanded and total expenditure on its product. The current price is $1.20 per unit, and quantity demanded is 2500 units per day. Based on extensive empirical studies, you know that price elasticity of demand for the product is 0.7. If the price increases to $2.20 per unit, what is the predicted percentage change in quantity demanded? Will total expenditure increase or decrease? (Remember to use the averaging method to calculate the percentage change in price.) The predicted percentage change in quantity demanded is%. (Enter your response rounded to the nearest integer. Do not include a negative sign in your response.) Will total expenditure increase or decrease? Total expenditure is related with price because the price elasticity of demand is Question Viewer so total expenditure will 1
