Concepts of cross elasticity and income elasticity

Assignment Help Business Economics

Reference no: EM138423

Q. Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would this affect the quantity of the good that you consume? Is the Demand for this good Price elastic or Price inelastic? Justify your classification by talking about the determinants of elasticity as they apply to this product. Say price is on the rise for this product and you are the manager of a store, would you be thrilled to be selling this product? Under what circumstances would you want to own a business that sells this product? In other words, how does an increase in price for this good affect your Total Revenue? Using specific examples, relate the concepts of Cross Elasticity and Income Elasticity to this product.

Reference no: EM138423

Questions Cloud

The tension is a constant 31.0 n : A horse races once around a circular track in a time of 118s, with a speed of 17 m/s. What is the radius of the track? How do you go about solving this.

Find the x and y components of this force : Each is afraid that one vine will break; as a result they grab each other and hang on. They swing upward together, reaching a point where the vines make an angle of 22.1° with the vertical. Find the value of the ratio m/M.

What force does the magnetic field of the current : From the shape of total energy vs. time plot, what can you conclude about the conservation of mechanical energy in your mass and spring system.

Effects of the drought under the tariff : Compare the effects of the drought under the tariff with those under the quota

Concepts of cross elasticity and income elasticity : Using specific examples, relate the concepts of Cross Elasticity and Income Elasticity to this product.

Advantages and disadvantages of regression models : What are the advantages and disadvantages of regression models in comparison to using a computerized regression routine.

How much work must be done by the brakes : A 60kg bicyclist rides his 7.8kg bicycle with a speed of 16m/s. How much work must be done by the brakes to bring the bike and rider to a stop.

Basic principles of organization : learned some of the basic principles of organization, pause and think of where you have already applied such concepts yourself

What is the minimum distance needed to stop the car : A spaceship moves past you at speed v. You calculate the ship to be 364 m long, whereas an astronaut on the ship measures a length of 420 m. Find v.

User Account

All Pages