Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

1. Coefficient of income in a regression of quantity demanded of commodity on price,  income, and other variables is 10.

dQ/ dI = 10

a. Compute income elasticity of demand for this commodity at income of $10,000 and sales of 80,000 units.

b. What would be income elasticity of demand if sales increased from 80,000 to 90,000 units and income rose from $10,000 to $11,000?  What type of good is this commodity?

2. Researcher estimated that price elasticity of demand for automobiles in United State is - 1.2, while income elasticity of demand is 3.0.  Next year, U.S. automakers intend to increase average price of automobiles by 5 percent, and they expect consumers' disposable income to rise by 3 percent.

a. If sales of domestically manufactured automobiles are 8 million this year, how many automobiles do you expect U.S. automakers to sell next year?

b. By how much must domestic automakers increase \price of automobiles if they want to increase sales by 5 percent next year?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M923067

Have any Question? 


Related Questions in Microeconomics

Table 10-3debt ratings median financial ratios by

TABLE 10-3 Debt Ratings: Median Financial. Ratios by Category   Median ratios for overall category in January 2011 (excludes financial firms) Earnings before S&P interest and   Cash flow from   debt taxes to net Pretax i ...

Research proposal economicsa proposal of your research in

Research Proposal Economics A proposal of your research in the form of a 2-page double-spaced typed paper (not including the cover page; use font number 12). Indicate your research topic, describe your research interest ...

Assignment swot analysiswrite a white paper in which you

Assignment SWOT Analysis Write a white paper, in which you describe how a SWOT analysis can help companies maximize their marketing strategies in a global context. Support your views with appropriate evidence. Your answe ...

Part awe have discussed several examples of constrained

Part A: We have discussed several examples of constrained utility maximisation in lectures and in classes. For example, we have learned how to find the optimal bundle of goods consumed by an individual trying to maximise ...

Assignmentthe soft drink and juice beverage industry is

Assignment The soft drink and juice beverage industry is very competitive with more companies entering the market each year. This week our case study is the Dr Pepper Snapple Group, a major player in the industry. Your a ...

The united states has a great consumer demand for health

The United States has a great consumer demand for health care services. The supply of these services or products, such as new medications or medical equipment, is affected by many factors. Select a service or product tha ...

Question 1 whether an economy is rich or poor both types of

Question 1.) Whether an economy is rich or poor, both types of economies should optimize or maximize the use of its available capital rather than seeking to mobilize new capital resources. Do your agree with this stateme ...

Economics problem set-question 1 sometimes goods are

Economics Problem Set- QUESTION 1: Sometimes goods are rationed, so people cannot buy as much as they want at the announced price. A good example is Super bowl tickets, which are sold at below market price. Suppose that ...

Technological advancement for firms- econin consideration

Technological Advancement for Firms- ECON In consideration of the arguments made by Chandler, Enduring Logic of Industrial Success, answer this question: • What role will technological advancement play in the future evol ...

Crowd funding assignmentthe purpose of this assignment is

Crowd Funding Assignment The purpose of this assignment is to have you become familiar with the concept of crowdfunding. As such you should do the following: 1. Google crowd funding, visit crowd funding web sites, and le ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate