(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. If the rental price of Blu-ray discs rises from $5 to $7: Question 2 options: v supply will increase from 50 to 70 rentals per weekend. the quantity demanded will decrease from 50 to 30 rentals per weekend. the quantity supplied will increase from 50 to 60 rentals per weekend. demand will decrease from 50 to 30 rentals per weekend.
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(Figure: The Blu-ray Disc Rental Market) Use Figure: The Blu-ray Disc Rental Market. If the rental price of Blu-ray discs rises from $5 to $7:
Question 2 options: v
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supply will increase from 50 to 70 rentals per weekend. |
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the quantity demanded will decrease from 50 to 30 rentals per weekend. |
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the quantity supplied will increase from 50 to 60 rentals per weekend. |
|
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demand will decrease from 50 to 30 rentals per weekend. |
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- Price ($/cup) 4 3.5 3 2.5 2 1.5 1 0.5 0 0 10 20 Original Supply A decrease in the price of coffee beans. New Demand Original Demand 30 40 50 60 70 80 90 Quantity (cups/hour) New Supply The figure above refers to the market for coffee. What might cause a shift from the original demand curve to the new demand curve? Check all that apply. An increase in the price of tea (a substitute for coffee). A decrease in income if coffee is an inferior good. An expectation that coffee prices will fall in the future. A decrease in the price of cream (a complement to coffee)6. Monorail Services The demand for monorail service in Las Vegas in 2005 could be approximated by q=-4,500p+41,500 rides per day when the fare was $p. a. In September 2005 the Las Vegas monorail increased the price from $3 per ride to $5 per ride. What was the effect on the price elasticity of demand? What does the answer suggest about the fare corresponding to maximum daily revenue? b. What would you have advised the Las Vegas Monorail Company to charge to maximize total daily revenue, and what would the resulting daily ridership and revenue have been? hpQuestion 1 The following table gives the daily supply and demand for mochi-ice cream at a store: Table 1 Price Quantity demanded (units) Quantity supplied (units) RM/unit 6.10 7 35 5.20 10 30 4.20 15 25 3.20 20 20 2.20 25 15 1.20 30 8 a) Determine the equilibrium price and quantity. b) Mochi-ice cream has gone viral on TikTok and hence increases the quantity demanded of mochi-ice cream by FIVE (5) units at each price, illustrate the changes on the graph. (3Marks) c) Briefly explain any TWO (2) factors that can cause the supply curve to shift leftward. d) "Surpluses drive prices up; shortages drive them down." Do you agree?
- (Figure: The Market for Chai Lattes) Use Figure: The Market for Chai Lattes. What is the price elasticity of supply between the prices of $2 and $2.50 per cup, using the midpoint method? Price per chai latte $4.50 4.00 3.50 3.00€ 2.50 2.00 1.50 1.00 0.50 0000 1.51 3.00 1.00 0.33 0 200 S D 600 1,000 1,400 1,800 Quantity of chai lattes in cupsTable 5.6 Quantity Supplied Price 10 $10 20 $20 30 $30 40 $40 50 $50 Refer to Table 5.6. If price increases from $10 to $30, the price elasticity of supply is _____ Group of answer choices 1. 0.5. 10. 5. 2.1. Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 12000) Demanded (Income: 16000) 10 32 90 20 16 40 40 15 80 4 7 160 3 a) Calculate the price elasticity of demand for CDs when price increases from 20 to 40 and income is Tk.16000. b) Calculate the income elasticity of demand for CDs when price is 10. c) How will the total revenue change when price of CDs decreases and the income is 12000, explain.
- Demand schedule and supply schedule Price Quantity Demanded Quantity Supplied $ 6 68 28 $10 20 40 a)Using the demand schedule below, write down quantity demanded as a function of price.Using the supply schedule below, write down quantity supplied as a function of price. b)Find equilibrium price and equilibrium quantity. c)Find price elasticity of supply when price changes from $6 to $10. Find price elasticity ofsupply when price changes from $10 to $16.Step 1 Analyze gasoline price hike statistics in the following scenario. In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from 1 million barrels to 800,000 barrels. No viable substitute has been created to replace gasoline. Step 2 Calculate the price elasticity of gasoline Be sure to show all work. Calculate the price elasticity of demand for gasoline. Calculate the elasticity of supply using the information provided. Calculate the changes in consumer and producer surplus. Because there is no viable substitute for gasoline at this time, what can you say about the cross-elasticity and income elasticity of supply and demand for gasoline? Is the demand for gasoline elastic, inelastic, perfectly elastic or inelastic, or unit elastic? Use the following as a guide for your calculation To show…13. The table below gives part of the supply schedule for personal computers in the United States. Price Quantity Supplied before tech change Quantity Supplied after tech $1,100 $900 12,000 8,000 change 13,000 9,000 a) Calculate the price elasticity of supply when price rises from $900 to $1,100 using the arc elasticity formula (the midpoint method). b) Now suppose that technology changes such that at every price, 1000 more computers are supplied. Now, as prices rise from $900 to $1,100, is the elasticity of supply smaller than, larger than, or equal to the elasticity in part a)? c) Does the change in b) change the slope of the supply curve? Are slope and elasticity the same thing? Explain.
- Problem #1: The accompanying table gives part of the supply schedule for personal computers in the United States. Price of Computer Quantity of Computers Supplied $१00 8 000 $1110 12 000 1. Calculate the price elasticity of supply when the price increases from $900 to $1,100 using the midpoint method.Table 5-6Consider the following demand schedule. Price Quantity Demanded $0 1,000 $3 800 $6 600 $9 400 $12 200 $15 0 Refer to Table 5-3. Using the midpoint method, what is the price elasticity of demand between $12 and $15?Suppose that the demand and supply schedules for raisins in South Carolina are as fallows, quantitiesare measured in millions of packs per month. What is the quantity of raisins bought if the price is 50cents ? Price (cents per pack) Quantity demanded20 18030 16040 14050 12060 10070 8080 60 a) 120b) 180c) 100