Rise in the price of tv sets in japan also depreciation

Reference no: EM1327583

Consumer income change

Suppose that during a given year: (1) the price of TV sets increases by 4 percent in Japan, (2) the dollar depreciates by 5 percent with respect to the yen (the Japanese currency), (3) consumer incomes in the United States increase by 3 percent, (4) the price elasticity of demand for imported TV sets in the United States is -1.5, and (5) consumers' income elasticity of demand for TV sets in the United States is 2. (a)* If the price of the imported TV set was $300 in the United States at the beginning of the year, approximately how much would you expect the price of the same imported TV set to be in the United States at the end of the year? (b)** By how much would the quantity demanded of imported TV sets in the United States change as a result of the change in price only? (c) By how much would the demand for imported TV sets in the United States change as a result of the increase in consumer income alone? (d) By how much would the demand for imported TV sets in the United States change as a result of both the change in price and in income?

Note: (a)* the 4 percent increase in the price of TV sets in Japan and the 5 percent depreciation of the dollar lead to a total increase of 9 percent in the dollar price of imported TV sets in the United States, from $300 to $327, and (b)** the change in price only?" refers to the import price.

Reference no: EM1327583

Questions Cloud

Explain about business and technology converging : Business and Technology Converging - Why do some people say that business and information technology are converging

Describing the employee handbook : How could you address state, federal, and international laws, if any, regarding privacy in an employee handbook section?

Examine the professional sales training : Some people will say that experience is the best teacher and that professional sales training theory will only take an individual so far.

Relationship between information and knowledge technologies : Check the relationship between information and knowledge technologies in relation to innovative activity

Rise in the price of tv sets in japan also depreciation : Rise in the price of TV sets in Japan also depreciation of the dollar lead to a total increase of 9 percent in the dollar price of imported.

Explaining employee handbook : How could you address state, federal, and international laws, if any, regarding privacy in an employee handbook section? How could you address state, federal, and international laws, if any, regarding privacy in an employee handbook section?

Explain enhance network security : Explain Enhance network security and assume that you are the network security officer of a company

Computation of earnings per share : Nielson Motors is currently an all equity financed firm. It expects to generate EBIT of $20 million over the next year. Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share

Explaining skills of effective supervisor : Describe an effective supervisor and what skills make him/her so effective.

User Account

All Pages