(Answered) 1 calculate elasticity in the following casesa assume that

Economics

1. Calculate Elasticity in the following cases:

a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently, the demand for the product is raised from 20,000 units to 25,000 units. Calculate the price elasticity of demand.

b) Suppose the monthly income of an individual increases from Rs 15,000 to Rs20,000. Now, his demand for clothes increases from 35 units to 40 units. Calculate the income elasticity of demand.

c) Assume that the quantity demanded for detergent cakes has increased from 400 units to 500 units with an increase in the price of detergent powder from Rs20 to Rs 25. Calculate the cross elasticity of demand between two products.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91528817
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Economics

A company is considering producing a new product based on

A company is considering producing a new product. Based on past records, management believes that there is a 70 percent chance that the new product will be successful, and a 30 percent chance it will not be successful. M ...

A random group of 20 depressive patients has been given the

A random group of 20 depressive patients has been given the MMPI. Their scores on a depression scale are as follows: 30 45 32 28 33 25 37 32 34 32 26 35 30 34 35 31 36 26 42 39 Construct a frequency distribution. Then ma ...

Compute the probability for a random variable x with

Compute the probability for a random variable X with µ=10 and σ=2. Calculate P(X

41 of the doctors in america are dentists if a random

41% of the doctors in America are dentists. If a random sample of size 826 is selected, what is the probability that the proportion of doctors who are dentists will be less than 40%?

In a random sample of 100 college student 60 were females

In a random sample of 100 college student 60 were females, 65 were under 21 years of age and 15 males were 21 years of age or older, a student is selected at random from the sample. What is the probability that a female ...

Suppose that third national bank has reserves of 20000 and

Suppose that Third National Bank has reserves of $20,000 and check able deposits of $200,000. The reserve ratio is 10 percent. The bank sells $20,000 in securities to the Federal Reserve Bank in its district, receiving a ...

You have a part-time job at the library that pays 10 per

You have a part-time job at the library that pays $10 per hour, 4 hours per day on Saturdays and Sundays. Some friends want you to join them on a weekend ski trip leaving Friday night and returning Monday morning. They e ...

In an inquiry into the nature and causes of the wealth of

In an inquiry into the nature and causes of the wealth of nations, Adam Smith listed three reasons for productivity to increase with specialization. What are these three reasons?

Please help me answer the followingkingsnorth et al 2002

Please help me answer the following Kingsnorth et al. (2002) examined the case processing time (in days) from arraignment to disposition for cases processed by the Sacramento County District Attorney's office. For the 90 ...

With smaller companies saving thousands and larger

With smaller companies saving thousands and larger companies saving billions through flexible manufacturing, if you are a discrete parts manufacturer seeking to be more lean, it is important to consider whether this migh ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert