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Calculate the own price elasticity of demand when the price goes from $5 to $4.
1. Compute the price elasticity of demand for paint and show your calculations.
What is the cross elasticity of demand between the two brands of widgets? (Use the midpoint method described in equation 3.14).
The price of bread is $0.60 and Aaron's income is $40. He buys 45 pounds of bread, 26 ounces of butter, and nothing else. What is the price of butter?
So, he increased his prices by 18%, yet revenues fell substantially. Why did this outcome occur?
How much butter does he buy, assuming that he consumes nothing else? Draw his budget constraint and identify his chosen consumption bundle.
Draw her budget constraint and identify her chosen consumption bundle.
Write a formula for Esteban's family of indifference curves. Plot some of those curves on a graph.
If labor hours increase by 10%, what is the percentage change in output (provide a numerical answer)?
What is her implied marginal utility of speaking with Jackie? What is her MRS for minutes talking to Bill with minutes talking to Jackie?
Calculate the cross elasticity of demand between kingston's product and the rival product.
Latanya likes to talk on the telephone. We can represent her preferences. What is the formula for her indifference curves? Plot a few of those curves.
Q1. What is output elasticity in this case? Q2. What sort of returns to scale does the firm face? Explain.
Kate trade until there is no further opportunity for mutual gain. Can you say anything about what they've traded How many M&Ms for how many Milk Duds?
The demand function for gadgets is given by the following formula. What is the point price elasticity of demand?
a) Determine the point price elasticity of demand at P = $3.00. b) What is the new point price elasticity if price is raised to P = $4.50?
Question: Assume Firm Y's production function is given by the following Cobb Douglas equation
What would the elasticity of supply have to be for a food stamp program to increase the availability of food to the poor with no prices increase?
Thinking about the trade-offs between rabbits and other goods, why would you expect the Declining MRS Principle to hold?
Sketch Ryan's indifference curves for the amount of water pollution and the amount of air pollution. Indicate how he ranks the curves you've drawn.
Given this information, what is the total profit for this production run? The factory wants to increase revenues and profits.
Is the firm charging the optimal price for the product? Demonstrate how you know.
Calculate the cross elasticity and assess the probable impact if competing publishes raise.
ABC company has conducted a U.S market survey for their most popular brand of contact lenses, and obtained the information. What is elasticity of demand?
What is his marginal rate of substitution between Kevin's yummies and Dora's yummies when each has the same number of yummies?