Suppose the income elasticity of demand for toys is +2.00. This means that:

20,781 results

economics

suppose the income elasticity of demand for toys is +2.00. this means that a. a 10 percent increase in income will increase the purchase of toys by 20 percent b. a 10 percent increase in income will increase the purchase of toys by 2 percent c. a 10 percent increase in income ...

Microeconomics - University of Boston

4. If Cassandra bought 16 cotton blouses last year when her income was $40,000 and she buys 24 cotton blouses this year when her income is $50,000, then what is her income elasticity of demand? Interpret what the income elasticity of demand you just calculated means to you. ...

microekonomics

Suppose the income elasticity of demand for a food is 0,5 and the price elasticity of demand is -1,0. Suppose also that Felicia spends $10,000 a year on food, the price of food os $2 and her income is $25,000

managerial economics

Explain the relationship between product X, product Y and product Z or the properties of each according to the following statements a. Cross price elasticity between X and Y is -4 b. Cross price elasticity between X and Y is 12 c. Cross price elasticity between Y and Z is 0 d...

Economics

1.calculate the price elasticity of demand when the price was increased from R25 to R40 ? (10) 2.is a price increase the correct decision to raise revenue?substantiate your answer using the price elasticity of demand and income elasticity of demand concepts? (30) 3.using ...

economics

suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00. a)suppose P=$1.00, what is the price elasticity of demand?what is the cross- price elasticity...

Managerial Economic

The equation for a demand curve has been estimate to be Q = 100 - 10P + 0.5Y, where Q is quantity, P is price, and Y is income. Assume that p = 7 Y = 50. a. Interpret the equation b.At a price of 7, what is price elasticity? c. At an income level of 50, what is income ...

Economics

If the income elasticity of demand is 3/4 and the interest elasticity of demand is -1/4, by what percent does money demand rise if income rises 10% and the nominal interest rises from 4% to 5%. Thanks!

Microecon

Using the midpoints approach to the cross elasticity of demand-calculate the cross eleasticity the demand for golf at all 3 prices. Price Demand1 D2 D3 50 15 10 15 35 25 15 30 20 40 20 50 D1 -Income $50k per yr, movies $9 D2 -Income $50k -movies $11 D3 -Income $70k -movies $11...

managerial economics

4. The equation for a demand curve has been estimated to be Q = 100 – 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50. a. Interpret the equation. b. What is price elasticity at P = 7 and arc elasticity at the interval between P = 6 ...

business

Question 17 of 20 0.0/ 5.0 Points Suppose that the income elasticity of demand for new clothes is positive. Other things being equal, which of the following statements is correct? A. New clothes are a normal good. B. There exists a positive relationship between income and the ...

Economics

The Own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if : the price of good X ...

iqra

. The equation for a demand curve has been estimated to be Q = 100 - 10P + 0.5Y, where Q is quantity, P is price, and Y is income. Assume P = 7 and Y = 50. a. Interpret the equation. b. At a price of 7, what is price elasticity? c. At an income level of 50, what is income ...

Managerial ECON

Suppose that during a given year: (1) the price of TV sets increases by 4% in Japan, (2) the dollar depreciates by 5% with respect to the yen, (3) the consumers’ incomes in the U.S. increase by 3%, (4) the price of elasticity of demand for imported TV sets in the U.S. is -1....

economics(micro)

hi ppl ! i have an assinment im stuck on, this particular question i cant do so if anyone can help plzzz do Q: in response to increasing thefts by drug addicts, the government passes legislation increasing both the penalty and probability of punishment for suppliers of illegal...

economic

Suppose that your firm was accused of illegally conspiring with other sellers to act as a monopolist. In searching for an expert witness, you discover one economist who has calculate the cross elasticity of demand for your industry's product to be+2.05, while another economist...

Economics

Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10. Suppose that the income elasticity of demand is 0.5 and the interest elasticity of money demand is –0.1. By what percentage does ...

Economics

Written Answer: Show calculations and respond to questions for the following example. Use either arc convention or the normal % change formula. Specify what you used. Quantity of Demand Income Period 1 100 $25,000 Period 2 125 $35,000 a)% change demand= b)% change income= c)...

Economics- please check

Please check to see if my answers are correct. Complete each sentence by choosing the correct answer from the list of terms below. You will not use all of the terms. *normal good *complements *income effect *demand curve *ineleastic *inferior good *law of demand *unitary ...

economics

I know this might be basic.....but I am still not sure about subject of elasticity? How do I know the effect, if no price or quantity demanded is given? Assuming that the price elasticity of demand for automobiles in the United States is 1.2 and that the income elasticity of ...

Economics: Price Elasticity

Please check my answers whether they are correct or not. If not, please help me why they are wrong. Thank you. Question 1: Point: A (300, 1000) Point B: (200, 1200) According to the midpoint method, the price elasticity of demand for hot dogs between point A and point B is ...

economics

Identify three goods each for which your demand is (a) elastic or (b) inelastic. What accounts for the differences in elasticity? Thank you for using the Jiskha Homework Help Forum. Let me help by explaining the difference between elastic and inelastic demand. elastic demand ...

Economics

Is price increase the correct decision to raise revenue?substainate ur answer using price elasticity of demand and income elasticity concepts

Microeconomics; price elasticity of demand

Please check and correct my answers? Thank you. QUESTIONS: 1. The time horizon of the demand curve is one determinant of the price elasticity of demand. Compared to the short-run demand for oil, the demand for oil in the long run will tend to be _____ elastic. 2. Consider the ...

Managerial Economics

This is some HW for a Managerial Econ class. I've got what I think are the answers, and I'd just like someone to read over my reasoning & check my answers. Any assistance is appreciated. Thanks! 2.) A recent study of the Madison, Wisconsin market by Chemyellow, Inc. found that...

Calculus

Equation: Suppose that the demand of a certain item is x = -0.7 p + 20. Evaluate the elasticity at E = 8. I'm not sure what steps to take to solve this. I know that elasticity is equal to the absolute value of [(p/q) x (dp/dq)]

Evaluating elasticity

The demand function for a certain item is x = 35(sqrt(32-p^2)) ---Evaluate the elasticity at 5. E(5)= I don't know how to find elasticity, so i don't know how to start this problem. If someone could explain elasticity i think that i could figure it out.

Economics

How is elasticity of supply related to elasticity of demand? Is this correct? I know that the terms supply and demand refer to the behavior of people as they interact with one another in markets. Buyers determine demand and sellers determine supply. Just as we can measure how ...

Macroeconomics

Suppose the demand curve is given by Q=200-20p. What is the price elasticity at P=$4? is demand elastic or inelastic at this point?

Help-elasticity

Demand function is Q=P^(-1.5)I^(0.3) where P is price, and I is income If the goal is to keep Q constant, how much must income change if there is a 2% increase in price.

Elasticity Demand Calculus

Find the elasticity of the demand function: pq = 42 p=$2 My professor went through this lesson really fast and I would appreciate anyone's help in explaining it. Thank You

Economics 201

Determine the price elasticity of demand for a microwave that experienced a 20% drop in price and a 50% increase in weekly demand quantity. I know I have to use the price elasticity of demand formula, but I keep getting the wrong answer. Can someone please help me?

microeconomics

Question 8 of 20 5.0/ 5.0 Points Suppose that the percentage change in demand is 20%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 4%. What is the price elasticity of demand? A. 0 B. 1 C. 2 D. 3

economics

Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or ...

econmics

Suppose the price of widgets rises from $7 to $9 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or ...

home economics

Suppose that 200 gallons of gasoline are demanded at a particular price. If the price drops by 1 percent, the quantity demanded of gasoline increases to 200.5 gallon. which of the following statement is true? a) The elasticity of demand is equal to 0.5 b) Demand is elastic c) ...

Managerial Economic

Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P. a. At price of $7, what is point elasticity? b. Between prices of 5$ and 6$, what is the arc elasticity? c. If the market is mark up of 100 individuals with demand curve identical to Mr. Smith's, ...

Economics

Hi, The demand for inflatable garden gnomes is given by P = 300 – 2Q, while the supply of is P= 100 + Q/2. How many garden gnomes are traded in equilibrium? I found the answer to be Q = 80. The related question was the one I had difficulty with: Suppose that the market for ...

Economics

Very confused on how to figure these out. Suppose that the following table shows the weekly visits to an amusement park as a function of the daily admission fee charged: #visits daily fee 200 $50 400 $40 600 $30 800 $20 1000 $10 What is the price elasticity of demand when the ...

Managerial Economics

Please help with this question: A researched estimated that the price elasticity of demand for automobiles in the U.S. is -1.2, while the income elasticity if demand is 3.0. Next year, U.S. auto makes intend to increase the avg price of autos by 5%, and they expect consumers' ...

economics

1. Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18. Compute the price elasticity of demand. Is the demand elastic or inelastic?

business

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is...

economics

If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for foreign travel. The income elasticity for foreign travel is 1.93

economics

Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is...

Economics help

What is the short-run effect on the exchange rate of an increase in domestic real GNP, given expectations about future exchange rates? Imagine that the central bank of an economy with unemployment doubles its money supply. In the long run, full employment is restored and ...

Math

The demand equation for a product is: q=60/p + ln(65-p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is lowered by 2% (from $4.00 to $3.92), use the answer ...

Micro Econ

Some texts define a "luxury good" as a good for which the income elasticity of demand is greater than 1. Suppose that a consumer purchases only two goods. Can both goods be luxury goods? Explain

economics

Suppose there are two goods. The demand for good 1 is q1=a-bp1+ep2 and the demand for good two is q2=a-bp2+ep1. a and b are strictly positive, |e|<b (1)Compute the optimal prices, and the Lerner index and inverse elasticity of demand for each good. (2)Now suppose the goods ...

Economics

The question is, what is the for Math formula to show rather the demand of apples is Elastic, Inelastic, or Unitary Elastic Thank You Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 ...

college economics

Suppose there are two goods. The demand for good 1 is q1=a-bp1+ep2 and the demand for good two is q2=a-bp2+ep1. a and b are strictly positive, |e|<b (1)Compute the optimal prices, and the Lerner index and inverse elasticity of demand for each good. (2)Now suppose the goods ...

Ecconomics

Price elasticity of demand.Tell whether is elastic,perfectly inelastic,perfectly elastic, inelastic,or unit elastic. And what would happen to total revenue if a firm raised its price in each elasticity range identified.a.Ed=2.5 b.Ed=1.0 c.Ed=~ D. Ed=0.8 Elasticity of demand is...

economic

Why would a firm wish to have knowledge concerning the income elasticity of demand for its product? Why indeed. Take a shot.

microeconomics

Ok, if anyone is able to help me within the next 12 hours or so, that would be wonderful! I think I am going about this problem correctly -- I am not looking for someone to solve this problem for me, but for someone to tell me if I am doing it right... You can see this chapter...

calc

The likelihood that a child will attend a live musical performance can be modeled by the following equation. q=0.01(0.0007 x**2+0.4 x +33) text( ) \(15<=x<=100\) Here, q is the fraction of children with annual household income x thousand dollars who will attend a live ...

Stats

Problem 29. Demand for cookies (Q) is given as follows: Q = 180/Pc + I/Pd + 3 Pc = price of cookies I = income Pd = price of donuts Note: Q=28, Pc=10, Pd=7 Given the above information what is the price elasticity of demand at Q=28?

Microecon

If you are given this function: P=1000-40Q where P=price and Q=sales..... How do you get the price elasticity of demand at a price that is $500? At what price, if any is the price elasticity of demand equal to one?

Microeconomics-Algebra Calculation

Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes in about 0.4. If a pack of cirarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should the govenment increase the price? ...

Microeconomics

I am not sure whether these questions are true or false: 1. Surpluses of dairy products that have regulated prices usually occur because the demand is price inelastic. 2. You observe that a linear demand curve shifts to the right, this means that the price elasticity of demand...

Econ

Coca-Cola in dispensers located on a golf course sells for $1.25 a can, and golfers buy 1,000 cans. Assume the course raises the price to $1.26 (assume a penny raise is possible) and sales fall to 992 cans. a. Using the midpoint formula, what is the price elasticity of demand ...

Advanced Microeconomics College Level

Information on the price elasticity of demand is particularly importatn to managerial decision making because: A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B) depending on the elasticity coefficient, ...

6th grade math

Ye Olde Toy Shoppe wants a set of toys: 1/4 of the toys should be blue, and 1/2 of the toys should be green. 2/3 of the toys should be giraffes, and 1/4 of the toys should be monkeys. Decription:???

Economics - Cournot Model

There is one firm with a marginal cost of 0. It's monopoly price is 10. Another firm enters, also with zero marginal cost. Using the Cournot model, would would the new oligopoly price be? Can this question be answered without more information about the demand for the product? ...

Math

For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at the indicated price. (Round your answer to three decimal places.) x + (1/9)p - 27 =0 ; p=23

Calculus

For the following demand equation compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at the indicated price. (Round your answer to three decimal places.) x + (1/9)p - 27 =0 ; p=23

Econ

Consumer expenditures on safety are thought to have a positive income elasticity. For example, as incomes rise, people tend to buy safer cars, they are more likely to fly on trips than drive, they are more likely to get regular health tests, and they are more likely to get ...

university-health economics

Given the following demand function for medical care: Q=100-5p Where: P = is the price of health service. Q = quantity demanded. What is the quantity demanded at p = 5. Draw the demand curve for medical care. Suppose the price rise to (6), calculate the change in consumer ...

calculus

Elasticity a) Find the elasticity of the demand function q + 2p = 5000 when p = $1000, and q = 3000. b) How would revenue be affected by a price increase?

Managerial Economics

I need assistance with the following question: A researcher estimated that the price elasticity of demand for automobiles in the United States is -1.2, while the income elasticity of demand is 3.0. Next year, U.S. auto makers intend to increase the average price of automobiles...

survey of economics

College Enrollment and Apartment Prices. Consider a college town where the initial equilibrium price of apartments is​ $400 and the initial equilibrium quantity is​ 1,000 apartments. The price elasticity of demand for apartments is 1.0 and the elasticity of supply ...

economics

If the demand for a good has unitary elasticity, or elasticity is −1, it is always true that an increase in its price will lead to more revenues for sellers taken as a whole.

Microeconomics

If the price elasticity of demand is 2, this means that a _____________ increase in price causes a ____________ decrease in quantity demanded. A. 15%; 100% B. 15%; 10% C. 20%; 40% D. 30%; 20%

Microeconomics

Consider the market for taxi rides in a particular metropolitan area. a) Suppose that, when the price per mile increases by 40%, total miles demanded falls by 30%. Solve for the price elasticity of demand. b) Is the demand for taxi rides elastic or inelastic (in this example...

microeconomics

For each of the following scenarios, decide whether you agree or disagree and explain your answer. a. If the elasticity of demand for cocaine is −.2 and the Drug Enforcement Administration succeeds in reducing supply substantially, causing the street price of the drug to...

Math - Limits/Derivatives

If a price-demand equation is solved for p, then price is expressed as p = g(x) and x becomes the independent variable. In this case, it can be shown that the elasticity of demand is given by E(x) = - [g(x) / xg'(x)]. Use the given price-demand equation to find the values of x...

math/econ

If the demand is x(p)=40(p-15^2) with p being the price and x being hte demand, what would the elasticity of demand equation be?

Elasticity

Hi guys, could you please help me with this question; What reason would firms wish to have knowledge in regards to the income elasticity of demand for its products??? Is it because it allows them to see what happens to their total revenue as price changes????? Since this is ...

microeconomics

Question 7 of 20 5.0 Points Suppose that the elasticity of demand for a product is 0.5 and quantity demanded increases by 20%. What must the percentage decrease in price have been?

economic

In response to increasing thefts by drug addicts, the government passess ligislations increasing both the penalty and the probability of punishment for suppliers of illegal drugs. what would you predict would happen to the rate of property crime committed by drug addicts fi ...

Business Math

3.) The demand equation for a certain product is q=500-40p+p^2 here p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 is increased by 1/2%, what is the approximate ...

Benue State University Makurdi

In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6 would you expect an increase or decrease in ...

MircoEcon

Agree or disagree with this statements and explain: If the demand for a good has unitary elasticity, or elasticity is -1, it is always true that an increase in its price will lead to more revenues for sellers taken as a whole.

Economics

Suppose a manager is interested in implementing third-degree price discrimination. The manager knows that the price elasticity of demand for Group 1 is -2 and the price elasticity of demand for Group 2 is -1.2. Based on this information alone we can conclude that the price ...

Calculus (demand)

18) The demand equation is x + 1/6p - 10+0. Compute the elasticity of demand and determine whether the demand is elastic, unitary, or inelastic at p=50. a) 5; elastic b) 1/9; inelastic c) 7/6; elastic d) 6; elastic I choose answer A. Is that correct?

Calculus

When an electronics store prices a certain brand of stereos at p hundred dollars per set, it is found that q sets will be sold each month, where q2 + 2 p2 = 41. a. Find the elasticity of demand for the stereos using implicit differentiation. b. For a unit price of p = 4 ($400...

Calculus

When an electronics store prices a certain brand of stereos at p hundred dollars per set, it is found that q sets will be sold each month, where q2 + 2 p2 = 41. a. Find the elasticity of demand for the stereos using implicit differentiation. b. For a unit price of p = 4 ($400...

Calculus

Find the price elasticity of demand. The demand function for the product is p=40-2x

Calculus

Given the demand function q=173-5p, determine the price where demand has unit elasticity.

Calculus

Given the demand function q=173-5p, determine the price where demand has unit elasticity.

Mircoeconomics: Elasticity

Please help! I have a mid-term test in a couple of minutes... -------------- If the demand for some good fluctuates, but supply is constant, then which of the following combinations would generally yield the greatest quantity fluctuations? A) large demand fluctuations and ...

economic

the demand function, P=20-0.5Q Determine the price elasticity of demand when P=2

Business Math

3.) The demand equation for a certain product is q=500-40p+p^2 where p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15 is increased by ½%, what is the approximate...

economics

Why do long-run elasticities of demand differ from short-run elasticities? Consider two goods: paper towels and televisions. Which is a durable good? Would you expect the price elasticity of demand for paper towels to be larger in the short run or in the long run? Why? What ...

economics

Studies show that the income elasticity of demand for servants in the United States exceeds 1. Nevertheless, the number of servants has been decreasing during the last 75 years while incomes have risen sygnificantly. How can these facts be reconciled?

demand & Supply

If the demand for butter rises by 4% while the price of margarine rises by 8%, then calculate the cross price elasticity of demand of butter with respect to the price of margarine? The formula for the cross-price elasticity is (%change in Qa)/(%change in Pb) Where Qa is the ...

Writing Skills Part 4

2.which of the following would most likely be an entry in a topic outline? A.Toys can be gender - neutral. *B.Toys children love C.Quality toys should require some imagination D.It's possible for toys to be both educational and entertaining. Thank you for your help Write a ...

microeconomics

TRUE OR FALSE: 9. Assume that the Minimum Wage has increased to $14 from $10. If the total labour-income at the wage of $14 is higher than the total labour-income at the wage of $10, it means that the labour-demand with respect to wage is elastic. FALSE. I don't understand why...

Microeconomics

If the price elasticity of demand is 2, this means that a __________ increase in price causes a __________ decrease in quantity demanded. A. 15%; 100% B. 15%; 10% C. 20%; 40% D. 30%; 20% answer B 15%, 10%

MANAGERIAL ECONOMICS

In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising. If the price elasticity of demand is -1.5 and the advertising elasticity of demand is +0.6 would you expect an increase or decrease in ...

Managerial Economics/Math

This is an MBA-level Managerial Economics Course. I'm working on some HW and just want to double-check my answers. 1. Jimbo's is a new company producing exploding cigars. Jimbo's company has the following demand curve for the cigars: P = 10 - 2Q Jimbo is currently charging $2 ...

managerial economics

1. Calculate the demand elasticity of demand ( by using at least two methods) given the following information: P1 = 10 Q1=100 P2 = 15 Q2 = 20 Is the product elastic or inelastic?

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