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- The following graph shows the demand for a good. PRICE (Dollars per unit) 70 ++ 35 25 10 0 OO +-+- 1 14 Region Between W and X 6 Between X and Y Between Y and Z O True O False For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. I EL 15 21 Elastic O O QUANTITY (Units) W Inelastic Unit Elastic O O O Demand O True or False: The slope of the demand curve is equal to the value of the price elasticity of demand. (?)While analyzing the semiconductor industry you notice that when the price of ultrapure water rises 2%, the demand for chip grade silicon declines 8%. From this data what appears to be true? O A Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of +4. O B. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of +0.25 O C. Chip grade silicon is a complement to Ultrapure water with a cross-price elasticity of-4. O D. Chip grade silicon is a substitute to Ultrapure water with a cross-price elasticity of -0.25Why did costs for shipping containers increase so sharply during the pandemic? Check all that apply. Companies were ordering more goods to meet increased demand, resulting in increased volume of shipped goods. O Containers were scarce since they were often stuck in locations that did not have cargo to send back to Asia, and demand for shipping was intense. O Container companies increased prices to take advantage of pandemic lulls. Increased demand of digital goods such as video games. In the US, incoming ships overwhelmed the dock capacity and so shipping containers were "trapped" on loaded ships.
- In 2018, a cold front in Barbados increased both the demand for water heaters andgasolines. The usage of gasoline was 581 tonnes, an increase from 499 tonnes in theprevious year. The Petroleum Company of Barbados advised Government officials thatdemand could outweigh supply and asked companies to increase the supply. They alsoasked major gasoline users, such as power plants, to reduce demand. iv. Discuss one factor EACH that you think influence demand and supply for waterheaters. Provide examples v. Is demand for gas is price elastic or price inelastic? Explain your reasoningThe following graph shows the demand for a good. 1 PRICE (Dollars per unit) Region Between W and X Between X and Y Between Y and Z For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic. QUANTITY (Units) Elastic O O O O True O False W Demand (?) Inelastic Unit Elastic O O O O O O True or False: The slope of the demand curve equal to the value of the price elasticity of demand.The following graph plots a supply curve for some hypothetical good. PRICE (Dollars per unit) 270 135 0 Between V and W 12.5 QUANTITY (Units) O True O False Y 40 45 Supply For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between X and Y O O ? True or False: As firms reach near maximum capacity at high levels of quantity supplied, supply becomes more elastic because firms may need to invest in additional capital in order to further increase production.
- suppose a professional basketball game is to be played at a suburban arena, which increases demand for parking on the night of the game. If the suburban area has the ability to create additional parking during periods of peak demand, then O A the supply of parking will be more elastic and the price of parking wil increase by a relatively large amount the night of the game. O B the supply of parking wil be more elastic and the price of parking wil increase by arelatively small amount the night of the game the supply of parking wil be more inelastic and the price of parking will not change the night of the game o D, the supply of parking wil be more inelastic and the price of parking will increase by a small amount the night of the game. relatively o E. the supply of Paking will be perfectly elastic and the price of parking will increase by a relatively large amount the night of the game.FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations on a typical Sunday dropped from 60 to 55. Which statement is correct? O FoisPas was initially maximizing revenues, as demand was unit-elastic at the initial price O The total costs faced of FoisPas on a typical Sunday must have increased for sure O The price increase led to a decrease in total revenues as demand was elastic at the initial price O FoisPas faces a horizontal demand curve O The price increase had a positive impact on total revenue as demand was inelastic at the initial priceWhen the price of a good increased by 50 percent, quantity demanded decreased by 100 percent. What is the absolute value of the price elasticity of demand? Select one: O a. 0.04 Ob 25 O c. 100 O d. 2 Assume the price of good Y increases by 2% and the cross price elasticity of demand with good X is 1. What economic classification describes good X in this situation? Select one: O a. An inferior good O b. A complement O c. A substitute Od. A normal good
- Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demandWhat is the sum of all individual demand curves for a product? Select one: summation demand cross out O b. market demand cross out Oc consumption demand cross out O d. total demand cross outRefer to the Figure. When the economy moves from Point E to Point A, there has been O O O O 69 0 Q Ara E Fome 学学 A B 52 51 an increase in demand and a increase in supply. an increase in quantity demanded and a idecrease in quantity supplied. an increase in demand and a decrease in supply. O a decrease in demand and a increase in supply. Dz MONSTER
