The demand for office chairs in thousands is Q-40-2 P2 At a price of $2, the price elasticity of demand is: O-8.0. O -4.0. -2.0. -0.25. O-0.5.
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- The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.(0.2) and that the rate of change of price to price is equal to (0.173) *. The elasticity of demand for the commodity is The elasticity of demand is (1). O The elasticity of demand is (2). 0 The elasticity of demand is (0.156) The elasticity of demand is (1.156) 0
- If a 10% increase in the price of pens causes the quantity demanded to decrease from 800 boxes to 400 boxes then the elasticity of demand is O-5 O.5 -5 5.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.A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? O-10 -.25 O -2 O -0.5
- 3 If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be: -0.6 greater than -0.6 less than -0.6 neither greater than, less than, nor equal to -0.6The price elasticity of demand for personal computers is 1.43 and sales for new pc's surge from 900 to 1170 because of a discount from $1200 to $_. 1199 1190 1000 800 n2c statements is true or false and explain if the demand for laptops has a price elasticity of -5 and an income elasticity of 2.5, then a price cut of 1% is necessary to offset a 1% income drop
- the demand function for a commodity is Q-500-5P. find out point arc elasticity for fall in price from rs 25 to rs 20.Price (dollars) 9. 7 10 14 18 22 26 30 Quantity (units per year) In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $8 to $7 is equal to A) 0.62. B) 0.40. C) 2.50. D) 1.00.14 If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded is caused by a: 15 A 10% increase in the price of 40 inch LCD televisions which have a price elasticity of demand of 2.5 will cause a: