If the price of a good falls by 15% and sales increase by 18%, what is...

If the price of a good falls by 15% and sales increase by 18%, what is the approximate price elasticity of demand at that price?

Please show steps as well.

Expert Solution

Rahul Sunny answered 2 years ago

When the price of a good falls, we know exactly what will happen to consumer spending...

When the price of a good falls, we know exactly what will happen to consumer spending on that good. True or False? Explain. Is the demand for hospital services inelastic or elastic? Explain. Briefly explain why indifference curves cannot intersect. If nurse practitioners and primary care physicians were perfect substitutes, what would you expect to be their wage differential? Other things being equal, if the demand for physician services suddenly became more inelastic, how would that affect consumer surplus?

1. If the price of a good falls by 10 percent, identify the price elasticity demand...

1. If the price of a good falls by 10 percent, identify the price elasticity demand from the following responses. Would the demand will elastic or inelastic? a. 20 percent more is bought b. 5 percent more is bought

economist suggest that a market can fall if? (b) if the price of a good falls...

economist suggest that a market can fall if? (b) if the price of a good falls by 10% and the percentage decrease in total amount consumer spend on the good is 5%, then the good is (c) A firm that has a branded produced is (d) an industry in which there are just a few large firms is lukely to be characterized by (e) if the percentage change in price 10% and percentage in quantity supplied is 5% then the...

Snowcome Company estimates that quarterly unit sales will increase by 15% assuming a unit selling price...

Snowcome Company estimates that quarterly unit sales will increase by 15% assuming a unit selling price of $30. Prepare a Sales Budget Quarterly for the upcoming year, 2018. Last Years quarterly sales figures are Sales 2017 Q1- 75076 Q2- 70041 Q3- 65081 Q4- 80037 2. Snowcome would like to have an ending inventory of finished goods equal to 10% of expected sales for the following period. Assuming the ending inventory of finished goods on December 31, 2017 is 8,500 units....

1) Suppose the price of a good increases 5%, and the quantity demanded falls 8%. The...

1) Suppose the price of a good increases 5%, and the quantity demanded falls 8%. The ----- of this good is -----. supply, unit elastic demand, perfectly elastic demand, inelastic demand, elasti 2) Suppose that when the price of a good increases from $120 to $132 per unit, the quantity demanded falls from 33 to 30 units. Using the midpoint method calculate price elasticity demand. -1 -1.25 3.0 -0.1 3) Along a straight-line demand curve, demand at higher prices is...

1. When the price of a normal good falls, the substitution effect contributes to a(n) _______...

1. When the price of a normal good falls, the substitution effect contributes to a(n) _______ in the quantity demanded and the income effect _______ the substitution effect. 2. The law of diminishing marginal returns assumes that

Why was the manufacturer able to increase the price so much? What type of good is...

Why was the manufacturer able to increase the price so much? What type of good is an Epipen? Do you think that the price increase is fair for consumers? Was raising the price in the best interest of the manufacturer? How did they think raising the price would affect their revenue? Why?

Question

If the price of a good falls by 15% and sales increase by 18%, what is...

Solutions

Expert Solution

Related Solutions