Question

For each of the following goods, state and defend the following:

(a) Whether you expect demand to be is relatively elastic or (b) whether you expect them to be inferior goods, necessities, or luxuries (c) One complementary good and one substitute good i. Natural gas ii. iPhone 11 iii. Used video games iv. Economics textbooks

Answer #1

a) Natural gas has an inelastic demand in the market i.e. even if the price rises the demand will not fall considerably. it will also be necessities. there are no substitutes of natural gas and car is the complement.

b) IPhones are elastic good as they take a larger share of budget and they will be considered as luxury i.e. if the income of the consumer rises the demand for the iPhones will increase. there are many substitutes they can be any android phones and complement will be network services.

c) Used video games are elastic demand and they are inferior good i.e. as the income rises the demand for used video games will fall, games are complement and nintendo is a substitute.

d) Economic books are inelastic, they are necessity and no substitute and notebooks can be complement.

a. What are the major determinants of price elasticity of
demand? Instructions: You may select more than one answer. Click
the box with a check mark for correct answers and click to empty
the box for the wrong answers. Substitutability checked Proportion
of income unanswered Luxuries versus necessities unanswered Time
unanswered Excise taxes unanswered Availability of complementary
goods unanswered Inferior goods and normal goods unanswered b. Use
those determinants and your own reasoning in judging whether demand
for each of...

** (a) (i) What is Managerial Economics?
(ii) What is the scope of Managerial Economics?
(iii) As a CEO of a company, of what relevance is Managerial
Economics to you?
(b) Define and give an example of each of the following demand
terms and concepts and illustrate diagrammatically a change in
each.
(i) Demand
(ii) Normal good
(iii) Inferior good
(iv) Substitute good
(v) Complementary good
(c) The market demand for brand X has been estimated as
Qx= 1,500 –...

Suppose the relationship between Demand for good x (Qx) can be
described by the following linear relationship (Py: price of good
y, I = income):
Qx= 120 – 6Px + 5Py + 3 I
From the demand relationship above, you can conclude: Goods X
and Y are substitute/complementary goods
because_______________________, and a decrease in Py would cause
quantity demanded/demand of Good X to increase/decrease.
Suppose Py = $5 per unit, and I = $10, and Px = $20. At these...

For each of the following products, indicate whether you believe
demand will be relatively price elastic or relatively price
inelastic. Give economic reasons for each reply. Remember that high
demand does NOT imply high elasticity. High
elasticity occurs if a change in quantity demanded
is relatively large compared to the associated
change in price regardless of how high the
quantity demanded is to begin with.
a. Mayonnaise in general
b. A specific brand of mayonnaise
c. Chevrolet automobiles
d. Tesla...

Exercise 4.11. For each of the following, state whether it is
true or false. If true, prove. If false, provide a
counterexample.
(i) LetX andY besetsfromRn. IfX⊂Y thenX is closed if and only if
Y is closed.
(ii) Let X and Y be sets from Rn. If X ∩Y is closed and convex
then eitherX or Y is closed and convex (one or the other).
(iii) LetX beanopensetandY ⊆X. IfY ≠∅,thenY isaconvexset.
(iv) SupposeX isanopensetandY isaconvexset. IfX∩Y ⊂X then
X∪Y...

For each of the following situations state whether the good is
elastic, inelastic, unitary elastic, perfectly inelastic, or unable
to determine and state which one of the elasticity
rules (not generalizations) you used to make your
determination.
When the price of Reese Peanut Butter Cups falls by 30% Stacey
increases her Reese buying by 30%.
Connor decreased the price of soda at his convenience store
causing the quantity of soda sold to rise giving him 10% more in
revenue.
When...

Exercise 4.11. For each of the following, state whether it is
true or false. If true, prove. If false, provide a
counterexample.
(i) Let X and Y be sets from Rn. If X ⊂ Y then X is closed if
and only if Y is closed.
(ii) Let X and Y be sets from Rn. If X ∩Y is closed and convex
then either X or Y is closed and convex (one or the other).
(iii) Let X be an...

For each of the following pairs of variables, indicate whether
you would expect a positive correlation, a negative correlation, or
little or no correlation. For the ones which are correlated, is the
relationship causal? If so, which one causes (or at least
influences) the other? If not, suggest a third variable which might
be related to both.
a:The number of cavities in elementary school children and their
vocabulary size.
b:The number of fire engines at each fire and the damage...

Q4. State whether the following are true or false with a brief
explanation (1-2 sentences).
(i) Given a control volume with one inlet and two exits, the two
exits must have identical mass flow rates.
(ii) You are given a control volume with one inlet and one exit
such that more ‘mechanical energy’ is coming in than going out
(‘mechanical energy’ is the sum of enthalpy, kinetic energy and
potential energy per unit mass), but are given no information on...

For each scenario below, do the following:
(1) Indicate which procedure you would use: (i) two-independent
sample t-test, (ii) paired t- test, (iii) chi-square
goodness-of-fit test, (iv) chi-square test of independence, (v)
t-test of a regression coefficient, (vi) an F −test for multiple
regression, (vii) a one-way ANOVA, or (viii) a two-way ANOVA.
(2) Based on your answer in (1), state the appropriate null and
alternative hypotheses.
(3) For all procedures except (i), state the degrees of
freedom(s) for the...

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