(Figure: The Demand Curve for Lattes) Use Figure: The Demand Curve for Lattes. If the price is $5, total revenue is: Price $10 9 8 7 6 5 4 3 2 1 . 0 O $20. 1 2 3 4 5 6 7 D 8 9 10 Quantity
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- Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?Maria has decided always to spend one third of her income on clothing. a. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? c. It Marias tastes change and she decides to spend only one fourth of her income on clothing, how does her demand curve change? What is her income elasticity and price elasticity now?What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
- What would the gasoline price elasticity of supply mean to UPS or FedEx?From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.PRICE (Dollars per bippitybop) 200 180 160 140 120 100 80 60 40 20 O 0 1 xe Demand 48 56 64 72 00 QUANTITY (Bippitybops per day) 8 18 24 32 40 Total Revenue Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph.
- 1. How is the price elasticity of demand for alcoholic drinks relevant pricing and I to determining the effect of minimum what determines the price elasticity for cheap alcoholic drinks of demandFigure 64 Price $10 D2 D1 0. 10 Quantity 64. Refer to Figure 64. What kind of shift in demand does this graph show? Select one: O a. An increase in demand Ob. A decrease in demand O c. None of the above O d. A movement in demand5. Sam’s income band has been provided below for the past 5 years and he wants to understand about the elasticity of Income for the products he purchased. Year Income Product A Product B 2013 10,000 400 200 2014 12,000 500 300 2015 17,000 2100 1400 2016 17,500 2200 2200 2017 20,000 4,000 2400 1.Calculate the income elasticity for the year 2014,2015,2016 and 2017 for both the products A and B. Comment on what elasticity it is in each year
- of Microeconomics Spring20 fall20 Suppose that the quantity of pizza demanded decreased by 15 percent after an increase in price of 10 percent. What is the price elasticity of demand for pizza? Select one: O a. -0.67 O b. 1.50 O C. -1.50 O d. 0.67 Next pageDraw the price effect and the quantity effect fora price change from $60 to $50. Which effect islarger? Does total revenue increase or decrease?No calculation is necessary5. Choosing demand elasticity on a graph Consider the demand for a luxury good such as a yacht. You can plot three different straight lines through the three points X, Y, and Z on this graph. Place the blue line (circle symbol) so that it goes through two of the points and shows the most likely demand curve for this type of good. Hint: Consider the relative elasticities of the different possible demand curves. 120 100 Demand Curve 80 60 40 20 4 10 12 14 16 LUXURY GOODS (Thousands per year) PRICE (Dollars per yacht)