Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

problem 1: A newspaper recently lowered its price from 50 cents to 30 cents. As it did, the number of newspapers it sold increased from 240,000 to 280,000.

a) Over this price range what was the elasticity of demand for this newspaper?
b) What was the degree of elasticity for newspaper?
c) A 1% change in the price of the newpaper led to a change in quantity demanded of ______?
d) What happened the newspaper’s total revenue as it dropped its price?

problem 2: Use the points on the graph below to answer the given problems.

1006_demand curves.jpg

a) What is Ep along D1 (from A to B)?
b) Determine the Ep along D2 (from X to Y)?
c) What are the slopes of Demand curves D1 and D2?
d) What can you say regarding the slopes and the elasticities of these demand curves?

problem 3: Economists estimate the short run elasticity of demand for a Chipotle burrito is -2.25.

a) What degree of elasticity does Chipotle burritos exhibit?
b) A 1% change in the price of Chipotle burritos would do what to the quantity demanded of Chipotle burritos?
c) What would happen if Chipotle lowered its burrito price by 2% to its sales (numeric answer)?
d) What happens to Chipotle’s total revenue if it were to lower its price by 2%?

problem 4:
Due to the recent downturn in economic activity, Taz, has seen his hours at work reduced. He used to work 30 hours a week at $13 and hour, but now he works 22 hours.

Due to this change he noticed he purchased more boxed Macaroni and Cheese, up from 1 box a week to 4. He also reduced his purchase of Coke from 2 12-packs to 1 12-pack per week.

a) What is the income elasticity of macaroni and cheese for Taz?
b) What type of good is Macaroni and cheese for Taz?
c) What is the income elasticity of Coke for Taz?
d) What type of good is Coke for Taz?

problem 5: Syesha loves to eat Sunday breakfast at her local Scrambles restaurant. She usually orders a la carte. Her usual breakfast consists of 2 scrambled eggs, 1 piece of bacon and 2 links of sausage. The price of an egg, a sausage link and a piece of bacon are all $1. Thus her breakfast has a price of $5.

Scramble restaurant changes the price of eggs to $1.50. She now orders the following for her breakfast: 1 scrambled egg, 2 pieces of bacon and 1 sausage link.

a) find out the cross price elasticity of eggs and sausage.
b) What type of relationship is there between eggs and sausage?
c) find out the cross price elasticity of eggs and bacon?
d) What type of relationship is there between eggs and bacon?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91451
  • Price:- $50

Priced at Now at $50, Verified Solution

Have any Question? 


Related Questions in Microeconomics

Assignmentfirms use inputs workers machinery natural

Assignment Firms use inputs (workers, machinery, natural resources) to produce outputs (goods and services). For example: General Motors uses steel, rubber and other materials to create automobiles. A pizza restaurant tu ...

Assignment 1 -i watch the videos on demand and supplythere

Assignment 1 - I) Watch the videos on Demand and Supply There are 5 changes in Demand that shift the demand curve to the right or left.  They are Change in Tastes and Preferences Change in Income Change in Population Cha ...

Task list principles of microeconomicsyou are starting

Task List: : Principles of Microeconomics You are starting your own Internet business. You decide to form a company that will sell cookbooks online. Justcookbooks.com is scheduled to launch 6 months from today. You estim ...

Watch the video on the link belowthen answer the following

Watch the video on the link below. Then answer the following questions: 1. Would the incentives discussed in the video be able to work in a college setting? Why or why not? 2. Have you ever changed your behavior because ...

1 a explain in clear language the economic inefficiency

1. a) Explain in clear language the economic inefficiency associated with adverse selection. b) The ACA (aka Obamacare) included an insurance mandate, which forces everyone to purchase insurance or face a penalty. Under ...

Scenario descriptionbigjet plans to launch a weekly flight

Scenario Description Bigjet plans to launch a weekly flight on a long-haul route. It faces four sets of decisions corresponding to short-run, medium-run, long-run, and very long-run operations. Short Run: In the short ru ...

Assignment discussion-applying balanced scorecardin many

Assignment: Discussion-Applying Balanced Scorecard In many cases, managers end up in trouble as they direct their focus exclusively on cost savings. Cost cutting is always emphasized, but other impacts, such as decreased ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Assignmentscenario summarya kansas city based supplier of

Assignment Scenario Summary A Kansas City based supplier of health care information technology (HCIT) solutions has recently hired you as a Human Resource Manager. You are in charge of hiring new medical consultants for ...

Assignmentquestion a daoism amp confucianism as fisher

Assignment Question A: DAOISM & CONFUCIANISM. As Fisher states in our textbook, "Individuals often harmonize the apparently opposite characteristics of Daoism and Confucianism in their own lives." In what specific ways m ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen