Assume the demand for Apple iphones is very elastic. If Appleraises the price on iPhones...
Assume the demand for Apple iphones is very elastic. If Apple
raises the price on iPhones from $900 to $1,100, will the total
revenue increase or decrease for Apple? Explain why.
When demand is very elastic then if price rise then the quantity
demanded will decrease in a big amount. When supply is very
inelastic then if the sellers' received amount fall due to tax then
the quantity supplied will not decrease too much. Hence if demand
is very elastic and supply is very inelastic then consumers will
bear a small amount of whole tax burden where producers will bear a
large amount of whole tax burden. Now, if demand is...
The demand curve of a monopolist is
A. Perfectly elastic
B. Very elastic but not perfectly elastic
C. Perfectly inelastic
D. Very inelastic but not perfectly inelastic
Assume that the demand for Starbucks coffee is elastic. Should
Starbucks increase or decrease the price of their coffee in order
to bring in more total revenue. Please explain your answer
What is the coefficient of demand elasticity for the Apple
watch? Is this elastic or inelastic? How do you interpret that
coefficient? (Use $349 and $299 in your calculation). The quantity
associated with $349 is 177,200. The quantity associated with $299
is 297,200.
In the market for Iphones the equilibrium price for Iphones is
$400, and the quantity of Iphones sold is 20,000.
(f) The Processor used to make Iphones becomes considerably
cheaper and innovation raises the incomes of the population. Show
the relevant shifts in your diagram
(g) Suppose the government implements a price ceiling of $300.
What happens to the market?
(h) Suppose the government implements a price ceiling of $500.
What happens to the market?
(i) Suppose the government implements...
Suppose demand for pianos is very elastic. Suppose that supply
of pianos is also quite elastic, but not as elastic as demand. If
government imposes a tax on pianos, and the tax is payable by
producers, what will be the outcome?
Select one:
Consumers will bear the entire burden of the tax
Producers will bear the entire burden of the tax
Consumers will bear more of the tax burden than producers
Producers will bear more of the tax burden than...
The demand for salt is price inelastic and the supply of salt is
price elastic. The demand for caviar is price elastic and the
supply of caviar is price inelastic. Suppose that a tax of $1 per
pound is levied on the sellers of salt and a tax of $1 per pound is
levied on the buyers of caviar. We would expect that most of these
taxes will be paid by the _________ of salt and the ________ of
caviar....
7-
If demand is ________, a price cut ________ the total
revenue.
elastic; increases
unit elastic; decreases
inelastic; increases
inelastic; does not change
5- Samantha was willing to pay $10 for a hamburger because she
was hungry but she only paid $2.50. What is the consumer surplus
Samantha gained from the hamburger?
$2.50
$7.50
$10.00
$12.50
9-
When the price rises, the firms' producer surplus ________. When
the price falls, the firms' producer surplus ________.
increases; decreases
decreases; increases
decreases;...
Say good X tends to be a relatively price-elastic good (demand
is more price elastic than supply). Say the government imposes an
excise tax on every unit of X buyers buy. The burden of this tax
will probably fall more heavily on:
sellers (gas stations)
hard to say
both sellers and buyers equally
buyers
Which of the following would cause the demand curve of iPhones
to increase (i.e. shift)? Assume that iPhones are a normal
good.
A decrease in the cost of glass screens used to make smart
phones
An increase in Samsung Galaxy prices, where Samsung Galaxy is a
substitute for iPhones.
A decrease in the level of incomes for the average household
An increase in the supply for iPhones