Apply the midpoints approach to the elasticity of supply

Assignment Help Econometrics
Reference no: EM13241618

Currently at a price of $1.00 each 100 popcicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run a price increase from $1 to $2 is a unit -elastic (Es =1.0) So how many popsicles will be sold each day in the short run if the price rises to $2 each. In the long run, a price increase from $1 to $2 has an elasticity of supply of $1.50. So how many popsicles will be sold per day in the long run if the price rises to $2 each? (Hint apply the midpoints approach to the elasticity of supply)

Reference no: EM13241618

Questions Cloud

The accrual method of accounting : In the Month of March, Chester Corporation received orders of 170 units at a price of $15.00 for their product Cedar. Chester uses the accrual method of accounting and offers 30 day credit terms.
Depict the mutarotation of beta-d-glucopyranose : Show the mutarotation of beta-D-glucopyranose to the alpha-D-glucopyranose. Show the open chain intermediate.
What is the differences among a proportion : What is the differences among a proportion, a percentage, and a ratio? How does a non-parametric business scenario differ from a parametric business scenario?
What is the electric potential at the origin : Three identical point particles that have charge q are at the vertices of an equilateral triangle that is circumscribed by a circle of radius a that lies in the z = 0 plane, What is the electric potential at the origin
Apply the midpoints approach to the elasticity of supply : Currently at a price of $1.00 each 100 popcicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run a price increase from $1 to $2 is a unit -elastic (Es =1.0)
Findings in the industry at the next managerial meeting : Your management team sees a number of similarities between your company operations and various aspects of the LG Electronics case(attached). You are asked to research the case and then to bring the outcome up to date with recent findings in the indus..
What is the potential difference across the three resistors : Three resistors, 28, 48, and 80 ?, are connected in series, and a 0.53-A current passes through them. What is the potential difference across the three resistors
When testing two populations with small sample sizes : When testing two populations with small sample sizes, do both sample sizes have to be identical? Why or why not?
What is dollar value of total surplus when output level is q : What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced How large is the dollar value of the consumer surplus at that output level

Reviews

Write a Review

 

Econometrics Questions & Answers

  What is the taxable income at the end of year

An injection-molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of ..

  What is the future worth of the savings

Austin Utilities is planning to install solar panels to provide some of the electricity for its groundwater desalting plant. The project would be done in two phases. The first phase will cost $4 million in year 1 and $5million in year 2.

  Determine the output per worker

In this question we are going to incorporates investment in human capital by agents, in a form similar to physical capital. Labor units are replaced by human capital units Y = AK?(?H)1?? where • H ? Units of Human Capital • ? ? [0, 1] ? Fraction of..

  Find the firms profit maximizing price and quantity

The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit maximizing level of output.

  Which option is better to keep marr effective

buy a computer for $2,500 now, keep it for 8 years and then sell it for $800. The computer is not expected to require any maintenance for the first 3 years, but starting in year 4, the maintenance cost will be $250 per year. Alternatively, you can..

  How to determine the least costly alternative

Two production lines are under evaluation. One uses waterjet cutting technology and has an initial cost of $100,000 , an annual operating cost of $10,000 , a useful life of 5years, and a salvage value of $70,000 at the end of 5years.

  What would be the reserves of first commerce bank

Sharon sells a government security worth $4,600,000 to the Federal Reserve Bank of Kansas City. She then deposits the funds in her checking account at First Commerce Bank. Her checking account had a $150,000 balance before this deposit.

  Calculate the supply and demand elasticities

Consider that the U.S. supply of ethanol follows the function S(p) = 5p, and that the US demand for ethanol is D(p) = 13.5 - 2.5p. Without any government role, there are in equilibrium 9 Billion gallons/year transacted at a price of $1.80/gallon.

  What price-quantity combination maximizes revenue

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination d. What price-quantity combination maximizes revenue e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the reven..

  Determine the cross elasticity of lorenas demand

Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie ..

  What life of the insulated tank has the lowest euac

The Clap Chemical Company needs a large insulated stainless steel tank to expand its plant. Clap has located such a tank at a recently closed brewery. The brewery has offered to sell the tank for $15,000 delivered.

  Determine price of soda pop sold at your stand in dollars

Amalgamated Popcorn, Inc. is a fairly small firm selling bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that your daily sales tend to follow a pattern that can be stated as: QP = 500 - 100PP + 1.2..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd