What is the elasticity of demand at Q = 500 when the demand equation is P = 1000 - Q? Recall that, based on our definition, elasticity takes non-negative values. 0 E-4 None of the other choices is correct. 0E-1 0 € -1.5 0 € -2
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- What would the gasoline price elasticity of supply mean to UPS or FedEx?(Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer period of time?What might you infer about the price elasticity of demand for diesel fuel in the short run? In the long run?
- The demand function for bicycles in Holland has been estimated to be Q = 2,000+ 15Y - 7.5P = where Y is income in thousands of euro, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euro and Y what is: The price elasticity of demand? -1.02 O -7.5 -0.24 -0.50 The income elasticity of demand? 0.20 1.02 1.00 O 0.14 15,000 euro,The elasticity of demand for apples is estimated to be-1.75, If the price of apples falls by 10%, how large do we expect the quantity of apples demanded to rise? A-10% B-175% C. 17.3% D. 35% OA OB OC ODP = 450 – 4Qp %3D 1 P =Qs + 25 4 Calculate demand elasticity at equilibrium: 1/8 O -1/8 8. -8
- Transport operators in Belize received permission to increase their fares 15percent, and they anticipated that revenues would increase by about 15percent. When the 15 percent increase was enacted revenues increased by only about 5 percent. What can you infer about the elasticity of demand for transportation? What were operators assuming about the elasticity of demandInterestingly, the demand in the car market experienced a decline at the same time. i. What can you say about the cross-elasticity of demand between petrol and car markets? XED = 0 1 > XED > 0 XED > 1 0> XEDUse the price-demand equationp+0.001x=45, 0sps45. Find the elasticity of demand whenp%3$25. If the $25 price is decreased by 4%, what is the approximate percentage change in demand? The elasticity of demand whenp%3 25 is (Type an integer or a simplified fraction.) If the price is decreased by 4%, the demand approximately %. (Type an integer or a simplified fraction.) is increases by decreases by
- 1. The American Mining Company is interested in obtaining quick estimates of the supply and demand curves for coal. The firm's research department informs you that the elasticity of supply is approxi- mately 1.7, the elasticity of demand is approximately -0.85, and the current price and quantity are $41 and $1,206, respectively. Price is measured in dollars per ton, quantity is captured as number of tons per week. (a) Is demand elastic, inelastic or unit elastic? Explain (b) Write down the linear supply and demand curves at the current price and quantity. (c) Using Excel, provide a graph of the demand and supply curves. Is the market in equilibrium? (d) Calculate the Total Revenue, Average Revenue, and Marginal Revenue of the American Mining Company at the equilibrium price and quantity.A vegetable fiber is traded in the US, has the following domestic supply and demand for various price levels as shown: Price US Supply (Million kilograms) US Demand (Million kilograms) 3 2 34 6 4 28 9 6 22 12 8 16 15 10 10 18 12 4 (a) What is the equation for demand? What is the equation for supply? (b) At a price of $9, what is the price elasticity of demand? What is it at a price of $12? (c) Do you think the product demand is elastic or inelastic at $9 and $12 respectively?Question 7At $73,a firm can sell 4,585 stereo earphones (3.5 mm for android). At this price, elasticityis estimnated at 2.5. What is the change in total revenue (+ or -) if the firm drops price by11%? Round your answer to the nearest dollar.