wrong words and write the word or group of words that would make the statements correct on the space provided before each number. ________________ 11. Economic goods are goods produced without cost. ________________ 12. In a perfectly elastic demand‚ there is an infinite change in quantity supplied when there is no change in price. ________________ 13. Unit cost is obtained by dividing change in total cost by change in quantity. ________________ 14. Profit
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Q = 3‚ 000 units. The absolute value of price elasticity of demand for this product is 1.5. If this firm charges price 5.20 it will sell Q = . (A) 3‚080 (B) 2‚920 (C) 3‚006 (D) 2‚820 (E) 3‚180 2. When Ana’s income was 1‚000 per week she was consuming 10 liters of milk weekly. When her income decreased by 50 dollars she was consuming 11 liters of milk per week. Ana’s income elasticity of demand is (A) -50. (B) 50. (C) 2. (D) -2. (E) -0.5. 3. Demand for public transit will increase when (A) price
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Dicuss how an understanding of price‚ income and cross elasticity of demand might be of practical use to the sales manager of Apple’s iPhone. Price‚ income and cross elasticity of demand might be of practical use to the sales manager of Apple’s iPhones who aim to maximize sales revenue. Price elasticity of demand (PED) measures the degree of responsiveness of quantity demanded of iPhone to a given change in the price of the good itself‚ ceteris paribus. Its formula is indicated by the % change
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Q2: Problem 3 (Chapter 1 Appendix) on textbook pp. 34 (10%) Victor Fuchs (1996) lists the following questions in an article in The Wall Street Journal. Identify whether the following questions involve positive or normative analysis. All the questions deal with a Republican plan to reform Medicare‚ the public health insurance program for the elderly. A. How many Medicare beneficiaries will switch to managed care? B. How much should the younger generation be taxed to pay for the elderly? C. Should
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IB1 ECONOMICS: ELASTICITY ASSIGNMENT ANSWER IN THE SPACE PROVIDED 1. Calculate the price elasticity of demand (PED) for CD’s if an increase in the price of CD’s from 15 euro to 18 euro causes the quantity demand to fall from 1000 to 900 units. 2. According to your calculation above‚ do CD’s have elastic‚ inelastic or unit elastic demand? Explain your answer. 3. Explain the significance of the co-efficient of the PED calculated in question
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Managerial Economics Q.1.0) For each of the following events‚ assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a.From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b.During the same period the price of radio sets declined‚ while the number of radio sets purchased increased. c.Housing prices are rising but more houses are sold. d.Australian
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faster than the change in quantity‚ which may remain constant. When more is paid for a good or a service‚ revenue increases. Materials • Price Elasticity and the Total-Revenue Curve • Inelastic Demand 3 . Price elasticity of Demand increases whe • C. people become more price sensitive over time Correct : Price elasticity of demand measures the percentage change in quantity demanded divided by the percentage change in price.
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multiplying the price of a product by the product. b. measuring the elasticity of a quantity demanded. c. dividing the price of the product by demand. d. dividing the demand for the product by its price. ____ 2. The relationship between the change in price and total revenue for an elastic demand curve is a. variable. c. inverse. b. unit elastic. d. direct. ____ 3. All of the following are determinants of demand elasticity EXCEPT a. whether the purchase of the product can be delayed
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decrease in the cost of labor for producing bicycles. (4 pts.) What happens to bicycle supply? (6 pts.) What happens to bicycle demand? Student Answer: When there is an increase in the price of labor for making bicycles the supply would decrease because it would cost more to make the bikes and the supply curve would shift to the left. There would be no change in the demand for the bicycles. Instructor Explanation: Since a change in costs to produce the product is a supply factor‚ a decrease
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UNIVERSITY OF PETROLEUM & ENERGY STUDIES DEHRADUN [pic] Harnessing Energy through Knowledge Assignment Topic TATA NANO ECONOMICS & MANAGEMENT DECISIONS (MBCE 701) MBA LSCM 1st YEAR Submitted to : Submitted by: Ms. K. Deepa Anoop(4)‚Ashish(9)
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