Question

Select a product or service and discuss your subjective estimate of its price elasticity of demand. Is it highly elastic or inelastic, unitary elastic, etc.?

Does it matter if you select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general?

What is the relationship between price elasticity and the effect on total revenue if the price of your product or service goes up or down?

Answer #1

I choose basic SALT since it is necessary for all, therefore, it has less elastic demand.

Yes, it matters if we select a specific brand of a product, such as Kellogg's corn flakes, versus breakfast cereal or Exxon gasoline versus gasoline in general due to their market demand and their price elasticity.

If price elasticity is greater than 1 then Total Revenue and Price has an inverse relationship and If price elasticity is less than 1 then Total Revenue and Price has a direct relationship.

Draw the demand curve of Apple and calculate the price
elasticity for their main product or service. Determine if they
have an elastic or inelastic demand curve.

11.
You decrease the price of your product but you find that
revenues are falling. Given this information, you can conclude that
the elasticity of demand for your product is:
A. unitary elastic
B. inelastic
C. elastic
10.
If the Smithson Industrial Product Corp. firm lowers the price
of its product and finds that total revenues increase, we can
conclude that:
A. consumers are elastic and are
price sensitive
B. consumers are inelastic and are
not price sensitive
C. consumers are unitary
elastic
Marks University performs...

1. The price elasticity of demand for iphone 6 is 1.2. Apple
wants to increase its total revenue. Would you recommend that Apple
raise or lower the price of iphone 6? Explain your answer.
2. The demand of gasoline is more inelastic in the short run
than in the long run. Why? Give examples that illustrate why the
demand of gasoline in the long run is not inelastic.
3. Choose one of the products or services that your company
provides,...

The table below shows monthly individual consumer demand
schedule for gasoline. Without calculating the price elasticity of
demand coefficients find out on which portion of the curve demand
is elastic and on which portion it is inelastic. Prove the answers
with corresponding calculations in the blank table column below (5
points).
Points
Price/gallon ($)
Qd (gallons)
Corresponding Calculations
A
6
20
B
5
38
C
4
54
D
3
72
E
2
95
F
1
120
Portion AB (underline the...

1) Using the midpoint method, the price elasticity of demand is
determined to be about 0.85. If there is a 10% decrease in the
quantity demanded of the product then what effect would this have
on the price of the product?
A decrease in the price of the product from $8.50 to $10
A 11.8% increase in the price of the product
An increase in the price of the product from $8.50 to $10
2)The ________ is negative for complementary...

3.Factors that affect a product’s price elasticity of demand
are
A. availability of close substitutes.
B. passage of time.
C. necessity versus luxury.
D. definition of the market.
E. All of the above are correct.
4. If a price increase causes a decrease in total revenues
(total expenditures), then the product is considered to be
A. price elastic.
B. price inelastic.
C. unitary elastic.
D. All of the above are correct.
E.None of the above are correct.
5.Price elasticity of...

First, give an example of a product or service that you
purchased in the last year for which your demand is relatively
inelastic. You should explain what factors influenced why your
demand for the selected product or service was inelastic.
Be as specific as possible in your explanation. You may wish to
review the factors influencing the elasticity of demand for
a product to assist you in your explanations.
Second, give an example of a product or service that you...

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...

Assume that the estimated demand function for a product X
is:
ln Qxd = 9 –
1.25 ln Px + 3.5 ln Py + 0.85 ln M + ln A
where Qxd is quantity demanded of product
X,
Px is unit price of product
X = $21,
Py is unit price of another
product Y = $7.50,
M is average income of consumers of
product X = $52,500, and
A is advertisement cost for product X
= $425.
A. Clearly...

1-As we move up the demand curve, the price elasticity of demand
* A) increases B) decreases C) becomes unitary D) does not
change
2-If the price of lemonade increases relative to the price of
grape juice, the demand for: * A) grape juice will decrease. B)
grape juice will increase. C) lemonade will decrease. D) lemonade
will increase.
3-An increase in price will result in no change in total revenue
if: * A) the percentage change in price is...

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