Compute your income elasticity of demand as your income

Assignment Help Business Economics
Reference no: EM1350466

Suppose that your demand schedule for compact discs as follows:

price quantitydemand quantity demand
(income=$10000) (income=$12000)

$8 40CDs 50CDsa
10 32 45
12 24 30
14 16 20
16 8 12

A) Use the midpoint method to compute your price elastcityof demand as the price of compact discs increases from $8 to $10 if(i)your income is $10000and (ii)your income is $12000

B) Compute your income elasticity of demand as your incomeincreases from $10000 to $12000 if (i)the price is $12 and (ii)theprice is $16

Reference no: EM1350466

Describe what makes that decision unethical

Describe what makes that decision unethical. Present an alternative ethical and legal solution to the decision focusing on the organization's responsibility to its stakehold

An equipment rental firm purchased new scissor lift

An equipment rental firm purchased a new scissor lift to add to its rental fleet. The scissor lift cost $25,000 and is expected to have a useful life of 2 years. The salvage v

Who has the absolute advantage in making ice cream

Brenda and Lela are sisters. They both like to make ice cream and cake. Brenda makes one batch of ice cream in eight hours and bakes a cake in two hours. Lela makes one batch

Effects of imposing industry-wide minimum safety standard

Demonstrate and discuss the effects of imposing a new industry-wide minimum safety standard. Under what circumstances might such a minimum safety standard leave at least some

Calculate the equilibrium price and quantity of lychees

Suppose the demand for lychees is given by the following equation: Qd =4000–100P+500PM, where P is the price of lychees and PM is the price of mangoes. What happens to the dem

Federal reserve pursues an expansionary monetary policy

If Congress and the president pursue an expansionary fiscal policy at the same time as the Federal Reserve pursues an expansionary monetary policy, how might the expansionary

Explain what is meant by game theory

Explain what is meant by game theory and how it can help us understand strategic behavior; also how it relates to international trade and comparative advantage--be sure to inc

What is the actuarially fair price of insurance

What is the actuarially fair price of insurance? What price are individuals w/$5000 in the bank willing to pay for the insurance?3. Will those w/$5000 in the bank voluntaril


Write a Review

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