Question
In: Economics
In a local market, the monthly price of Internet access service decreases from $3535 to $2525,...
In a local market, the monthly price of Internet access service decreases from
$3535
to
$2525,
and the total quantity of monthly accounts across all Internet access providers increases from
80 comma 00080,000
to
180 comma 000180,000.
What is the value price elasticity of demand, expressed as a positive number?
is it 3.75?
. (Round your answer to two decimal places.)
The demand is
Solutions
Expert Solution
P1 = 3535 Q1 = 80,000
P2 = 2525 Q2 = 180,000
Price elasticity of demand = (Q2 - Q1) / (P2 - P1) * (P1 + P2) / (Q1 + Q2)
= (180,000 - 80,000) / (2525 - 3535) * (3535 + 2525) / (80,000 + 180,000)
= (100,000 / -1,010) * (6,060 / 260,000)
= -606,000,000 / 262,600,000
= -2.31
The absolute value of price elastisity of demand is 2.31.
The demand is elastic. [Because PED is greater than 1]
Rahul Sunny answered 8 months agoRelated Solutions
19-4. In a local market, the monthly price of Internet access service decreases from $20 per...
19-4. In a local market, the monthly price of Internet access
service decreases from $20 per account to $10 per account, and the
total quantity of monthly accounts across all Internet access
providers increases from 100,000 to 200,000. What is the price
elasticity of demand? Is demand elastic, unit-elastic, or
inelastic?
19-7. In the market for hand-made guitars, when the price of
guitars is $800, annual revenues are $640,000. When the price falls
to $700, annual revenues decline to $630,000....
“As more people buy computers, the demand for Internet service increases and the price of Internet service decreases. The fall in the price of Internet service decreases the supply of Internet service.” Is this statement true or false?
3.a) “As more people buy computers, the demand for
Internet service increases and the price of Internet service
decreases. The fall in the price of Internet service decreases the
supply of Internet service.” Is this statement true or false?
Explain.3.b) What is the effect on the equilibrium in the
maple juice market if maple juice becomes less popular and a more
expensive robot is used to pick maple fruits? Explain with words +
graph
1.In market equilibrium, when the price of complement in production decreases, the price in the new...
1.In market equilibrium, when the price of complement in
production decreases, the price in the new equilibrium point will
be........................
2. In market equilibrium, when the price of complement
decreases, the new equilibrium quantity will be ……….……
3.
a) If the interest rate decreases, how will it impact the market price of a bond?...
a) If the interest rate decreases, how will it impact the market
price of a bond?
b) Do long-term bonds have higher price risk than short-term
bonds?
Please illustrate your point by comparing the price change of
two bonds of 1yr and 10yr maturity respectively due to interest
rate changes. Assume both bonds have $1000 par and $100 annual
coupon payment. show work
Suppose there are only two firms serving your market with the high-speed Internet access. Market demand...
Suppose there are only two firms serving your market with the
high-speed Internet access. Market demand is estimated to be P = 40
– 5(Q1 + Q2). Each firm’s marginal cost is
$20.
Suppose each firm maximizes its own profit, treating the
other’s quantity as constant. Find an expression for firm 1’s
optimal output as it depends on firm 2’s. In equilibrium, what
common levels of output will each firm supply?
b. Suppose the two firms decide to collude in...
Digital River Inc. provides cable TV and Internet service to the local community. The activities and...
Digital River Inc. provides cable TV and Internet service to the
local community. The activities and activity costs of Digital Light
are identified as follows:
1
Activities
Activity Cost
2
Billing error correction
$30,000.00
3
Cable signal testing
86,400.00
4
Reinstalling service (installed incorrectly the first time)
29,000.00
5
Repairing satellite equipment
32,400.00
6
Repairing underground cable connections to the customer
19,000.00
7
Replacing old technology cable with higher quality cable
170,000.00
8
Replacing old technology signal switches with higher...
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and...
Three Rivers Inc. provides cable TV and Internet service to the
local community. The activities and activity costs of Three Rivers
are identified as follows:
a. Identify the cost of quality classification
for each activity and whether the activity is value-added or
non-value-added.
Quality Control
Activities
Activity
Cost
Quality Cost
Classification
Value-Added/
Non-Value-Added
Classification
Billing error correction
$21,700
External failure
Non-value-added
Cable signal testing
49,000
Appraisal
Value-added
Reinstalling service (installed incorrectly the first
time)
46,700
External failure
Non-value-added
Repairing satellite...
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and...
Three Rivers Inc. provides cable TV and Internet service to the
local community. The activities and activity costs of Three Rivers
are identified as follows:
a. Identify the cost of quality classification
for each activity and whether the activity is value-added or
non-value-added.
Quality Control Activities
Activity Cost
Quality Cost Classification
Value-Added/
Non-Value-Added
Classification
Billing error correction
$48,600
Cable signal testing
114,000
Reinstalling service (installed incorrectly the first
time)
104,600
Repairing satellite equipment
53,200
Repairing underground cable connections to the...
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and...
Three Rivers Inc. provides cable TV and Internet service to the
local community. The activities and activity costs of Three Rivers
are identified as follows:
1
Activities
Activity Cost
2
Billing error correction
$33,000.00
3
Cable signal testing
105,000.00
4
Reinstalling service (installed incorrectly the first time)
29,000.00
5
Repairing satellite equipment
35,000.00
6
Repairing underground cable connections to the customer
15,000.00
7
Replacing old technology cable with higher quality cable
164,000.00
8
Replacing old technology signal switches with higher...
Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and...
Three Rivers Inc. provides cable TV and Internet service to the
local community. The activities and activity costs of Three Rivers
are identified as follows: a. Identify the cost of quality
classification for each activity and whether the activity is
value-added or non-value-added. Quality Control Activities Activity
Cost Quality Cost Classification Value-Added/ Non-Value-Added
Classification Billing error correction $24,800 Cable signal
testing 69,000 Reinstalling service (installed incorrectly the
first time) 53,400 Repairing satellite equipment 18,400 Repairing
underground cable connections to the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
ADVERTISEMENT