Question
In: Economics
3. Refer to the accompanying graph. Price Quantity of I-phones (Income = 20,000) Quantity of I-phones...
3. Refer to the accompanying graph.
|
Price |
Quantity of I-phones (Income = 20,000) |
Quantity of I-phones (Income = 30,000) |
|
$350 |
250 |
375 |
|
$450 |
200 |
325 |
|
$550 |
150 |
275 |
|
$650 |
100 |
225 |
|
$750 |
50 |
175 |
- Suppose the price of an I-phone is $650, calculate the income elasticity of demand for I-phone?
- Is I-phone a normal good? Explain.
- Do you expect the cross-price elasticity between I-phones and android phones positive or negative? Explain.
4.
(a) Do you expect the supply curve of diamonds is steep or quite flat? Explain.
(b) With better technology of finding diamonds, how will the price elasticity of supply of diamonds change? Show your answers in a graph.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
3. Refer to the accompanying graph. Price Quantity of I-phones (Income = 20,000) Quantity of I-phones...
3. Refer to the accompanying graph.
Price
Quantity of I-phones
(Income
=
20,000)
Quantity of I-phones
(Income
=
30,000)
$350
250
375
$450
200
325
$550
150
275
$650
100
225
$750
50
175
Suppose the price of an I-phone is $650, calculate the income
elasticity of demand for I-phone?
Is I-phone a normal good? Explain.
Do you expect the cross-price elasticity between I-phones and
android phones positive or negative? Explain.
Quantity of Chicken demanded (Qd) Price of chicken (Pc) Income (I) Price of Juice (Pj) Advertising...
Quantity of Chicken demanded
(Qd)
Price of chicken (Pc)
Income (I)
Price of Juice (Pj)
Advertising
(Ad)
Price of beef
(Pb)
4427.8
42.2
13500
65.8
78.3
20.7
4429.9
38.1
13413.3
66.9
79.2
22
4429.8
40.3
13439.2
67.8
79.2
24
4430.8
39.5
13459.7
69.6
79.2
25.3
4431.2
37.3
13492.9
68.7
77.4
24.7
4433.3
38.1
13528.6
73.6
80.2
23.7
4435.6
39.3
13560.3
76.3
80.4
29.8
4436.4
37.8
13624.6
77.2
83.9
25.9
4436.7
38.4
13666.4
78.1
85.5
24.5
4438.4
40.1
13717.8
84.7
93.7...
In Example A.2, quantity of compact discs was related to price and income by quantity = 120 - 9.8 price + .03 income.
In Example A.2, quantity of compact discs was related to price and income by quantity = 120 - 9.8 price + .03 income. What is the demand for CDs if price = 15 and income = 200? What does this suggest about using linear functions to describe demand curves?
Draw a graph to show the effect on the equilibrium price and quantity of hamburgers if...
Draw a graph to show the effect on the equilibrium price and
quantity of hamburgers if
(a) the price of hot dogs increases
(b) a new breed of cattle is developed with much faster growth
(c) research proves that this new breed results in hamburgers with
more cholesterol
(d) the wages of workers who process the hamburgers patties
increase
The accompanying table shows the price and yearly quantity sold of souvenir T-shirts in the town...
The accompanying table shows the price and yearly quantity sold
of souvenir T-shirts in the town of Crystal Lake according to the
average income of the tourists visiting.
price of t-shirt
Quantity of t-shirts demanded when average
tourist income is 20,000
Quantity of t-shirts demanded when average
tourist income is 30,000
$4
3,000
5,000
$5
2,400
4200
$6
1,600
3000
$7
800
1000
(a) Using the midpoint method, calculate the price elasticity of
demand when the price of a T-shirt...
1.) a. Graph and explain how a monopoly determines the quantity to produce and the price...
1.)
a. Graph and explain how a monopoly determines the quantity to
produce and the price to charge that maximizes their profit.
b. Why will a profit maximizing monopoly not charge a price in
the lower region of the demand curve?
c. What should a monopoly do to its price if it is currently
operating at an output level where marginal revenue is $40 and
marginal cost is $43? Explain your reasoning.
d. Graph and explain the deadweight loss due...
A. Graph the equilibrium price and quantity if Apple operates as a monopoly. B. Using the...
A. Graph the equilibrium price and quantity if Apple operates as
a monopoly.
B. Using the graph, identify the equilibrium price and quantity
if the cell phone industry was perfectly competitive.
C. If a per unit tax is imposed on phone producers, will the tax
cause a larger change in quantity if Apple operates as a monopoly
or a perfectly competitive firm? Why?
Refer to the graph that describes income and consumption patterns over a typical life cycle to...
Refer to the graph that describes income and consumption
patterns over a typical life cycle to answer the following
questions:
Which part of the accompanying graph depicts dissaving?
BREAK-EVEN ANALYSIS 1. The quantity for a 17-inch LCD TV is 20,000 at a price of...
BREAK-EVEN ANALYSIS
1. The quantity for a 17-inch LCD TV is 20,000 at a price of
Php25,000, while 45,000 is demanded for the price of Php15,000.
Assuming a linear relationship between price and quantity, which of
the following models the price-quantity function of the LCD TV?
2. A young entrepreneur is willing to supply 60 pieces of
personalized baller band at a price of Php80 and 100 at a price of
Php110. Assuming a linear relationship between price and quantity,...
The accompanying table lists the cross-price elasticities of demand for several goods, where the percent quantity...
The accompanying table lists the cross-price elasticities of
demand for several goods, where the percent quantity change is
measured for the first good of the pair, and the percent price
change is measured for the second good.
Good
Cross-price elasticities of demand
Apple and orange
+0.95
Shirt and trousers
-2.55
Explain the sign of each of the cross-price elasticities. What
does it imply about the relationship between the two goods in
question?
b.
Which of the following...
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