elastics and inelastics, You just opened a flower shop and are trying to understand, Microeconomics

elastics and inelastics, Microeconomics

Assignment Help:

You just opened a flower shop and are trying to understand pricing issues. You were told that elasticities are very important in determining prices and what products to supply, so you decide to investigate this concept.

You call your friend, an economics professor, and ask, "What is the price elasticity of demand? What determines it? What is elastic and inelastic demand?"

To really understand it, compute the following price elasticities of demand:

•The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
•The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.
•The price of water increases by 15% but there is no drop in the quantity demanded.
Of the above examples, which is more elastic, and which is the least elastic? Why? Answer the following questions:

•Why is elasticity an important concept for a business? What if national income went up? How would that affect elasticity?
•What is the price elasticity of supply? What determines it?
•Compute the following price elasticities of supply:
?The price of a hotel room increases by 20%, and the quantity supplied increases by 10%.
?The price of health care goes up by 50% , and the quantity supplied increases by an equal amount.
?The price of a book increases by 10%, and the quantity supplied increases 20%.
?In the above examples, which is more elastic and which is the least elastic? Why?
•What kind of supply and demand elasticities would the following goods have, and why?
?Bridge tolls
?Beachfront properties
?Gourmet coffee
?Luxury automobiles
?Gasoline
?Cell phones
?Computers
?College tuition
Now that you are an expert on elasticities, what do you think would be the best time of year to raise prices, and why? What do you think the elasticities are in the flower business? Use graphs and hypothetical tables to support your answer. Please submit your assignment.

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

elastics and inelastics, Microeconomics

Related Discussions:- elastics and inelastics

Environmental effects of the use of robots in factories, A 1500 word resear...

Explain what the natural rate of unemployment, Explain what the natural rat...

Explain the terms trade and the balance of trade, Distinguish between the t...

Price floor , Suppose that the U.S. Department of Agriculture (USDA) admini...

Economics for you, How to solve economics assignment help?

Demand and supply considerations of education, Normal 0 false ...

Socialist economy, what is basic economic problem

Project report on p-block elements, where would i find the matter for this ...

Consumption theory, brief explain of keynesian consumption theory

Economic models, the general characterictics of economic models,its limitat...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT