Question 2. 2. If the price of a good is decreased and total revenue received from the sale of this good does not change, then the price elasticity of demand for the good is (Points : 3) elastic. inelastic. ***** THIS WAS WRONG ***** unitary. None of these Question 3. 3. Which of the following could cause a long-run shift in demand as part of the "guiding function of price"? (Points : 3) a change in tastes and preferences an increase in price
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for people, but there are some alternatives out there. Demand One was asked to describe what has occurred to change the demand for the product or service and its market and equilibrium prices. Assuming that the demand remains the same for the product much has changed. The product of gasoline has remained the same far as people having the need for it. People still drive their vehicles everywhere they go. This has not changed the demand for gasoline. The market for gasoline has also gone up
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Boston Cellular Corporation 1. The type of demand in a market such as this case, is elastic. Elastic demand is a type of demand that will rise or fall depending on the price of the good. Products that people don’t need to survive are usually of elastic demand. They also have several close substitutes and are sensitive to price changes. This was demonstrated when the new manager increased prices to customers in the firm’s service area, the demand for the cellular plans decreased. 2. I believe
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Inelastic 2. Tax revenue collections will be in the following order: Gasoline > Beer > Cigarettes > Coca cola > Books the more the elasticity, the less the revenue collected. 3. Similarly, the burden on buyers (tax borne by them) is more for goods that have inelastic demand. So the same sequence as in Q.2 4. The govt. would tax goods with inelastic demand as people will consume for them despite the change in price. Part 2 Tax rates imposed on cigarettes. (Cents per pack) 1. As of 08/2013
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Supply and Demand Name University of Phoenix Supply and Demand People who are planning to buy a new house should first be well informed about the status of their new locality’s real estate market. The housing market is strongly governed by certain economic conditions, and understanding the economic trend will allow interested buyers to wisely choose the best price for their new house. It is also an established fact that the business conditions can also influence the
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company depend on international customers? 3. What are the major determinants of demand for the firm’s primary product? Explain your choice of variables. If necessary, describe how determinants differ across customer segments. What observable variables might this company use to detect changes in these determinants of demand? (Observable variables are measures that can be tracked over time to detect changes in demand conditions). You should also determine if sales are cyclical and/or seasonal. To
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service stations in the U.S Price elasticity of demand Price inelastic because no parameters can affect the ebb and flow of business. Price of paper products are relatively the same. Inelastic because of the limited offerings in specific genre of live entertainment. Price is pretty elastic due to the demand of the consumer. Each restaurant is vying for their share of the business by providing value meals. Price is elastic due to the price and demand. There is also a lot of competition.
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new iPhone which is the iPhone 6 to try to keep beating the competition. With this case study I will try to find the right price that they should sell it at and what will balance the price with the demand. Overall I will be investigating what the selling price should be in order to get the most demand off customers. Firstly I will be using a model of revenue before Apple conducted a world-wide search. The selling price will have a big effect on how much profit they will earn, as if the price is
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a. If we do not have scarce resources, will we have a law of demand? Will we observe price rationing for goods? The law of demand states the relationship between quantity demanded and price, showing that the lower the price, the higher the demand and vice versa. If we do not have scarce resources, there will still be a law of demand, because all humans are greedy. This means that we will always want more of what is there and demand always initially exceeds supply, but supply will then catch up
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Practice Final Exam NAME: . Fall 2014 FINAL EXAM PRACTICE QUESTIONS 1. Suppose Demand and Supply for a competitive industry in the short run can be described the following equations: QD=100 – 2P, and QS=40+2P. Suppose further that the total cost curve for a representative firm in the industry is given by TC = 100+4q+q2, with MC=4+2q. a. Sketch a double graph that depicts the market supply and demand in equilibrium in conjunction with individual firm costs and output choice. Does not need
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