Question
In: Economics
The price of a large pizza decreased from $14.00 to $10.00. As a result, the quantity...
The price of a large pizza decreased from $14.00 to $10.00. As a result, the quantity demanded of skateboards increased from 310.00 to 330.00.
a. Using the midpoint formula, what is the percentage change observed for the price of a large pizza? (Give your answer to two decimal places)
b.Using the midpoint formula, what is the percentage change observed for the quantity demanded of skateboards? (Give your answer to two decimal places.)
c.What is the cross-price elasticity of demand between pizzas and skateboards? (Give your answer to two decimal places.)
Solutions
Rahul Sunny answered 1 week agoRelated Solutions
The price and quantity of A, an inferior good, sold decreased after a shock to the...
The price and quantity of A, an inferior good, sold decreased
after a shock to the market. What could explain this change?
A) An increase in price of B (a complementary good for A)
B) An increase in price of C (a substitute good for A)
C) A decrease in the income of A consumers
D) All of the above are correct
E) Both a and c are correct
F) Both a and b are correct
G) Both b and...
A 10% increase in the price of pizza causes a 20% drop in the quantity of...
A 10% increase in the price of pizza causes a 20% drop
in the quantity of pizza purchased and a 10% drop in the quantity
of beer sold. What can you say about the price elasticity of demand
for pizza and the cross-price elasticity of demand between beer and
pizza? Explain your answer and show your work. Discuss the nature
of the two goods (pizza and beer).
Rank these three items in terms of their price
elasticity of the demand...
When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?
Beer and pizza are complements because they are often
enjoyed together. When the price of beer rises, what happens to the
supply, demand, quantity supplied, quantity demanded, and the price
in the market for pizza?
When the price of beer rises, what happens to the supply, demand, quantity supplied, quantity demanded, and the price in the market for pizza?
Beer and pizza are complements because they are often
enjoyed together. When the price of beer rises, what happens to the
supply, demand, quantity supplied, quantity demanded, and the price
in the market for pizza?
The price of good A has recently increased by 7 percent. As a result, the quantity...
The price of good A has recently increased by 7 percent. As a
result, the quantity demanded has decreased by 3 percent.
1. Is the demand for good A elastic or inelastic? Explain
why.
2. Does good A likely have many substitutes or only a few
substitutes?
Explain why.
3. As a business manager, how would knowing the price elasticity of
demand
for your firm's products help you determine the prices of the
products?
_____________________________________________________________
suppose that your demand schedule for pizza is as follows: price (dollars) quantity of pizzas demanded...
suppose that your demand schedule for pizza is as follows:
price (dollars)
quantity of pizzas demanded (income= $20,000)
quantity of pizzas demanded (income= $24,000)
8
40
50
10
32
45
12
24
30
14
16
20
16
8
12
Using the midpoint method, your price elasticity of demand as
the price of pizzas increase from $14 to $16 is _____ if your
income is $20,000 and ______ if your income is $24,000.
if the price of a pizza is...
ABC corporation raises the price of its product by 21% and as a result, quantity sold...
ABC corporation raises the price of its product by 21% and as a
result, quantity sold falls from 350 units a week to 310. (Hint,
the denominator has a % in it. So, you will need to be careful with
what you do in the numerator. Do not cancel things that cannot be
cancelled!)
7.1.
The elasticity of demand for their product is ______:
ABC corporation raises the price of its product by 21% and as a
result, quantity sold...
The market for pizza has the following demand and supply schedule (5 Marks) Price Quantity Demanded...
The market for pizza has the following demand and supply
schedule
Price
Quantity Demanded
Quantity Supplied
$4
135
26
$5
104
53
$6
81
81
$7
68
98
$8
53
110
$9
39
121
What is the equilibrium price and quantity in this market?
If the actual price in this market is above the equilibrium
price what would drive the market towards the equilibrium?
If the actual price in this market is below the
equilibrium price what would drive the...
Answer the following questions. Assume that the price of pizza is $1 per slice and the price of a large Pepsi is $2.
7. Use the following table to answer the questions below.
Quantity
Consumed
Total
Utility
Total Utility
(per week)
of
Pizza
of Pepsi
0
0
0
1
242
668
2
552
1200
3
792
1632
4
996
2016
5
1176
2316
6
1344
2556
7
1506
2712
8
1626
2736
9
1728
2664
10
1818
2448
Answer the following questions. Assume that the price of pizza
is $1 per slice and the price of a large Pepsi is $2.
Calculate the...
Rain spoils the strawberry crop. As a result, the price rises from $4 to $6 and the quantity demanded decreases from 1,000 to 600 boxed a week. Over this price range.
Rain spoils the strawberry crop. As a result, the price rises from $4 to $6 and the quantity demanded decreases from 1,000 to 600 boxed a week. Over this price range.
a) What is the price elasticity of demand?
b) Describee the demand for strawberry.
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