Use arc elasticity to find the price elasticity of demand, Microeconomics


a) The price of good X goes up by 2.75%, the quantity demanded of good Y goes from 10,500 units to 25,000.  What is the Exy?  What does that number mean?  What is the relationship between these two goods?

b) National incomes have gone from and average of $36,000 last year to $34,000 this year.  We see that the amount of widgets has changed from 102,500 last year to 105,000 this year.  What is the income elasticity of widgets?  What does this number mean? What type of good is a widget?

504_Use Arc Elasticity to Find the Price Elasticity of Demand.png

c) Use Arc Elasticity To Find The Price Elasticity Of Demand.  What does this number mean? Is it in the elastic or inelastic range? What would happen to total revenue with the price reduction?

d)  Northern California Pro Bikes hired an economist to make predictions about the firm's sales and total revenue.  The economist found that the price elasticity of demand for Pro Bikes is 0.8.  Should the firm increase or decrease the price of Pro Bikes?  Why?

Posted Date: 3/7/2013 4:46:55 AM | Location : United States

Related Discussions:- Use arc elasticity to find the price elasticity of demand, Assignment Help, Ask Question on Use arc elasticity to find the price elasticity of demand, Get Answer, Expert's Help, Use arc elasticity to find the price elasticity of demand Discussions

Write discussion on Use arc elasticity to find the price elasticity of demand
Your posts are moderated
Related Questions
Equilibrium is explained as follows: Equilibrium is the state in which there are no shortages and surpluses; or we can say that the quantity demanded is equal to the quantity s

Sir/Ma''am i have to make a project of 4-5 page on Investigating the buying behavior of individuals in the white goods sector and seeing if there exists any negative relationship b

I need to write an essay about industrial and labour relations ( at most 5 pages ) Deadline is in a month. I would like to know if your tutor can do that and how much it costs.

Withdrawing MRTP Restrictions: The restriction on the scrutiny of an investment proposal that it does not violate the provisions of MRTP Act was withdrawn. This freed big bus

Q. Explain about Demand - Constrained? Demand-Constrained: An economy is demand-constrained when level of output and employment is limited by the amount of overall demand (or s

The owner of a firm Mr. Rajneesh expects to make a profit of Rs.5,50,000, Rs.6,50,000, Rs.7,50,000 and Rs.8,50,000 at the end of the 1st, 2nd, 3rd and 4th year respectively. Rajne

if australian governmrnt imposed a sales tax on petrol by $0.25, then the price of petrol will rise by 0.25. consumers can not get by without petrol, so they have to pay the whole

Question 1 Identify the basic postulates of economics Question 2 Discuss the role of price mechanism Question 3 Explain the shape and application of Engel curve

How can we test adulterants in vegetable oils?

what is the energy of violet light with a frequency =7.50 x 10 to the 14 s-1