AlYamamah University Managerial Economic Elasticity of Demmand Questions

AlYamamah University Managerial Economic Elasticity of Demmand Questions

Order Custom written here

( https://homeworklance.com/alyamamah-university-managerial-economic-elasticity-demmand-questions/)

AlYamamah University Managerial Economic Elasticity of Demmand Questions

 

Chapter 3

  1. The demand curve for a product is given by Qdx= 1,200 – 3Px – 0.1Pz

Where Pz = SR300.

  1. What is the own price elasticity of demand when Px= SR140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below SR140?
  2. What is the own price elasticity of demand when Px= SR240? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price above SR240?
  3. What is the cross price elasticity of demand between good X and good Z when P=SR140? Are good X and good Z substitutes or complements?

 

  1. Suppose the own price elasticity of demand for good X is -4, its income elasticity is 2, its advertising elasticity is 3, and the cross price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good will change if:
  2. The price of good X increases by 10%.
  3. The price of good Y decreases by 5%.
  4. Advertising increases by 14%.
  5. Income decreases by 8%.

 

  1. Suppose the cross price elasticity of demand between goods X and Y is 4. How much would the price of good Y have to change in order increase the consumption of good X by 20 percent?

 

Chapter 4

  1. A consumer has $300 to spend on goods X and Y. the market prices of these two goods are Px= $15 and Py = $5.
  2. What is the market rate of substitution between goods X and Y?
  3. Illustrate the consumer’s opportunity set in a carefully labeled diagram.
  4. Shoe how the consumer’s opportunity set changes if income increases by $300. How does the $300 increase in income alter the market rate of substitution between goods X and Y?

 

  1. A consumer must divide $600 between the consumption of product X and product Y. The relevant market prices are Px= $10 and Py = $40.
  2. Write the equation for the consumer’s budget line.
  3. Show how the consumer’s opportunity set changes when the price of good X increases to $20. How does this change alter the market rate of substitution between good X good Y?

 

  1. Consider the following budget line:

100=1𝑋+5𝑌

  1. What is the maximum amount of X that can be consumed?
  2. What is the maximum amount of Y that can be consumed?
  3. What is rate at which the market trades goods X and Y?

 

  1. A consumer must spend all of his income on two goods X and Y. In each of the following scenarios, include whether the equilibrium consumption of goods X and Y will increase or decrease.  Assume good X is an normal good and good Y is an inferior good.
  2. Income doubles.
  3. Income quadruples and prices double.
  4. Income and all prices quadruples.
  5. Income is halved and all prices double.

Get 100% Original and Plagiarism Free Work

Get    Homework Help

Visit: How it Works?

Visit: Homework Lance

 

We write high-quality sample essays, term papers, research papers, thesis papers, dissertations, book reviews,nbook reports, speeches, assignments, business papers and custom web content

Ask Your Homework Question and Get Help from Our Qualified Tutors

ASK A QUESTION

Direct Email us at: Info.homeworklance@gmail.com

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *