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

Assignmentbulllaw of bailment1borrow your friends car and

Assignment • Law of bailment. 1.Borrow your friend's car and scratch the car against the wall. What's your duty that you must be responsible for? 2. If you rented from car rental agency, what would be your duty and where ...

Assignment description1st forum assignmentbullwhat

Assignment Description 1st Forum Assignment: • What organizational leadership challenges do you see in your industry today? • What organizational leadership challenges do you foresee in your industry 10 years from now? • ...

Assignmentin many instances public relations activities

Assignment In many instances public relations activities take the form of damage control, and in these instances, the firm is in a reactive public relations strategy mode. Although a reactive strategy may seem a contradi ...

Discussion questionsummationplease respond to the

Discussion Question Summation Please respond to the following: • Reflecting back on everything you have learned in this course, discuss the single most important lesson any entrepreneur should apply in order to be succes ...

Assignmentmicroeconomicsdirections unless otherwise stated

ASSIGNMENT Microeconomics Directions: Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four dou ...

Write a paper 2 - 4 pages based upon the following

Write a paper (2 - 4 pages) based upon the following activity: During an evening of television viewing, write down all of the advertisements you see (minimally use 10). 1. Which ones did you like? Which ones did you disl ...

Problem assignmentmicrosoft word - sio 20 problem

Problem Assignment Microsoft Word - SIO 20 Problem Assignment 4_2016.docx 1. Describe the life-cycle of a frontal cyclone (also called "wave cyclone" or "midlatitude cyclone"). Draw a diagram if that helps. 2. Describe t ...

Complete case- avis love staff accountant from the case

Complete Case- Avis Love, Staff Accountant from the case book. The written case analysis must be 5-7 pages in length, including APA format and include 6-7 scholarly citations/references. Prepare the case analysis using A ...

Answer these two questionthese is 2 econ question you need

Answer these two question These is 2 econ question, you need answer these by reading the article . you need give me the answer in 1 hour 1. Explain how settled agriculture led to civilization (meaning economic specializa ...

Managerial economics discussionexamine the common price

Managerial Economics Discussion Examine the common price setting strategies of airlines that use game theory. Predict the potential effects of such pricing strategies on the demand for seats, and conclude the resulting i ...

  • 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