Specify the product as luxury or necessity

Assignment Help Business Economics
Reference no: EM13851140

The product can be Dunkin Donuts coffee or anything else if it works better

Price Elasticity of Demand measures the extent to which the quantity demanded of a good or service changes when the price of the good or service changes, ceteris paribus.

Income Elasticity of Demand measures the extent to which the quantity demanded of a good or service changes when the income changes, ceteris paribus.

Answer the following 5 questions. Type your answers and submit a hardcopy of your written answers to the instructor in the class on the due date. Don't email your written answers to the instructor, this is not an online course and your submission by means of emailing will not be accepted or graded. You need to attend the class and submit a hard copy of your written typed answers to the instructor.

1. Pick a business that you know something about or can find information on. Briefly describe the business and its main product or service.

2. Specify the product (described in 1) as luxury or necessity.

3. Specify price elasticity of demand for the product (described in 1) as elastic or inelastic. Briefly explain why.

4. Specify Income elasticity of the product (described in 1) as greater than one or smaller than 1. Breifly explain why.

5. Based on your answer to 4, specify your product as Normal or Inferior. Briefly explain why.

Verified Expert

Reference no: EM13851140

Calculate the value of these wage rates in equilibrium

For a firm in the widget industry, X = 100L - L2; where X is the quantity of widgets produced, and L is the number of labor hours hired. The demand for this firm's output is p

Why is long-run market supply curve upward-sloping

Why is the long-run market supply curve upward-sloping in an increasing-cost industry? As output rises, demand increases. Higher demand increases the price that firms can char

Competition is diminished by consolidating two firms

The US Federal Trade Commission justifies their record of approval of most mergers by asserting that even though competition is diminished by consolidating two firms into one,

Monthly deposit into the retirement account

Mr. Funperson will graduate with an engineering BS degree from USF before his 25th birthday, and start his first professional job immediately upon his graduation. Mr. Funperso

Interest is compounded-number of year-long periods

If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work us

Unemployment is the natural rate-unemployment rises

The steady-state rate of unemployment is U/L = s/(s+f). Suppose that the unemployment rate does not begin at this level. Show that the unemployment rate will evolve over time

Movement along demand curve and shift in demand curve

How did Adam Smith justify the new economic system which was later to be called capitalism? Explain the difference between a movement along a demand curve and a shift in the d

What is the amount of the annual payment

A Japanese car maker plans to expand its production in the United States. The company borrowed $137,702,482 for this expansion at an interest rate of 8% per year. The loan wil

Reviews

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