The demand for mini cassette players can be characterized, Ask an Expert

Economics

The demand for mini cassette players can be characterized by the following point elasticities: own price elasticity= 2 in absolute value, cross price elasticity with AA alkaline batteries= -1.5, and income elasticity = 3. Indicate whether each of the following statements is True or False and explain.

a) a price increase for cassette players will decrease both the number of units demanded and the total revenue of sellers

b) the cross price elasticity indicates that a 2% reduction in the price of cassette players will cause a 3% increase in the battery demand

c) demand for the cassette players is price elastic and they are normal goods

d) falling battery prices will definitely increase revenues received by the seller of both cassette players and batteries

e) a 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in income

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91723679

Have any Question?Write your Review or question?

Related Questions in Business Economics

A survey of internet users reported A survey of Internet users reported

A survey of Internet users reported that 20% downloaded music onto their computers. The filing of lawsuits by the recording industry may be a reason why this percent has decreased from the estimate of 27% from a survey t ...

Consider a country that has been producing a lot of oil and

Consider a country that has been producing a lot of oil and suppose that from one year to the next its oil wells run out. The country will be poorer than previously. According to the two definitions above, is it in a rec ...

A jewerly store paid a unit price of 250 less 40 16 8 for

A jewerly store paid a unit price of $250 less 40%, 16% , 8% for a shipment of designer watches. the store's overhead expenses are 65% of cost and the required profit is 55% of coat. a. What is the regular selling price ...

Ford motors expects a new hybrid-engine project to produce

Ford Motors expects a new? Hybrid-engine project to produce incremental cash flows of $ 95 million each year and expects these to grow at 4?% each year. The upfront project costs are? $900 million and? Ford's weighted av ...

What is the theory of consumer choice and how it consumers

What is the theory of consumer choice and how it consumers facing trade-offs make decisions and how they respond to changes in their environment?

Can someone please help in this question - if the the price

Can someone please help in this question - If the the price of a pack of 35-count Wipes box-pack increased by 12% while revenue from those wipes increased by 5%. Calculate the own-price elasticity of demand for Wipes box ...

A game is played with a bag of marbles the bag contains 3

A game is played with a bag of marbles. The bag contains 3 red, 5 blue, and 10 yellow marbles. A player can reach in the bag and randomly select one marble. If the marble is Red the player gets $12. If the marble is Blue ...

Why would the australian government debt be consider not

Why would the Australian government debt be consider not too high?

Recent studies have confirmed that there is a relationship

Recent studies have confirmed that there is a relationship (r = -.43) between the average number of minutes someone spends text messaging during class and their final grade in that given class. Based on their data the fo ...

Suppose you have used the following production function to

Suppose you have used the following Production Function to estimate the Industry's average and marginal products for its inputs: Q = 150 L1/4K1/3 M1/5. Where Q stands for output; L is labor; K is capital (machine hors) a ...

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