A minor league baseball team raised the average price of its tickets from $8 to $8.90 and found that average attendance at its games dropped from 5,200 to 4,700. Using the arc elasticity of demand formula, the price elasticity of demand for tickets is (Express your answer as a real number rounded to two decimal places. Don't forget the negative sign.)
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- A minor league baseball team raised the average price of its tickets from $8 to $8.50 and found that average attendance at its games dropped from 5,200 to 4,800. Using the arc elasticity of demand formula, the price elasticity of demand for tickets is Don't forget the negative sign.) (Express your answer as a real number rounded to two decimal places. The demand for tickets is thereforeSuppose you work for a local car parts supplier, and you’re looking at ways to increase revenue. You remember from your economics course, that people respond to price changes. You decide to test this theory. Assume, that as the price of an alternator falls from $40.00 to $38.00 the quantity of Y demanded increases from 110 to 118. Then the coefficient of price elasticity of demand is: If you want to increase revenue, you should:Consider the market for laptops. Suppose that, due to a microchip shortage, laptop prices increased from $1,800 to $2,000. Over the same time period, laptop sales to consumers have decreased from 734,000 to 700,000 units. One way to calculate the elasticity of demand from these two points is to use the midpoint method (as discussed in the online lecture). Remember, use the absolute value for your answer. Using this method, the elasticity of demand for laptop computers is about: Select one: Oa. 1.27 Ob. 0.79 Oc. 2.48 Od. 0.45
- The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $50 but then falls to $35 due to a recession. What is the price elasticity of demand for taxi rides? (Enter your response rounded to two Using the midpoint formula, the price elasticity of demand is decimal places.) Demand is inelastic Price (dollars per taxi ride) 60 55 50 45 30 25 820- Q15- 10 54 04 0 A B 40.000 80.000 120.000 160,000 200,000 Quantity (taxi rides per day) D 240.000Imagine you work as an economist for a particular airline (A). Your job entails estimating the passenger demand for airline travel provided by A. Accordingly, you estimate the following: Price elasticity of demand for A’s service = 3 Cross elasticity of demand for A’s service (with respect to airline B’s price) = 2 Income elasticity of demand for A’s service = 1 Making sure to show all of your work, if consumer income falls by 5% (due to a recession), and at the same time airline B lowers its price by 10%, all else equal, what would you specifically recommend A due to its price to maintain its quantity of passengers (i.e., lower or raise its price and by what percent)? Hint: Elasticities are ratios of percentage changes.The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $50 but then falls to $5 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is (Enter your response rounded to two decimal places.) Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0- 0 A B D 40,000 80,000 120,000 160,000 200,000 240,000 Quantity (taxi rides per day) Q
- a. a. Suppose that a small market Major League Baseball team currently charges $12 for a ticket. At this price, they are able to sell 12,000 tickets to each game. If they raise ticket prices to $15, they would sell 11,053 tickets to each game. What is the price elasticity of demand at $12? If the demand curve is linear, what is the algebraic expression for demand?Your company receives 40 excess copies of a book. You plan to sell these books in two markets: directly in the store or sell them on ebay. Here are the two demand equations: Store Demand: P_S = 200 – 2Q_S PS=200–2QS Ebay Demand: P_E = 250 – 5Q_E PE=250–5QE If your goal is to maximize total revenue, how many books will you sell on ebay?Suppose demand for popcorn at the concession stand increases from 200 boxes per game to 230 boxes per game when the price decreases from $3.00 to $2.50. Using the point price elasticity, what is the price elasticity of demand for popcorn?
- The price elasticity of demand for beer among young adults (age 18 to 24) is about 1.30, and the number of highway deaths is roughly proportional to the group’s beer consumption. If a state imposes a beer tax that increases the price of beer by 20%, by how much will the number of highway deaths among young adults decrease?A college raises its annual tuition from $23,000 to $24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic? As the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand? The quantity demanded of good X rises from 130 to 145 units as income rises from $2,000 to $2,500 a month. What is the income elasticity of demand for good X? The quantity supplied of a good rises from 120 to 140 as price rises from $4 to $5.50. What is price elasticity of supply of the good?The figure shows the demand curve for a PlayStation game. The price elasticity of demand when the price increases from $30 to $50 is ________. 5/3 1.67 1 3/5