Sally runs a vegetable stand The following table shows two points on the demand curve for the heirloom tomatoes she sells Price Quantity demanded per week 100,000 200,000 $4.00 $2.75 Sally's marginal revenue from lowering the price of tomatoes from $4.00 to $2.75 is S (Enter your response rounded to two decimal places ) Lowering the price trom $4 00 to $2 75 results in an output effect of $and a price effect of S (Enter your responses as whole numbers and inciude a minus sign ir necessary.)

Sally runs a vegetable stand The following table shows two points on the demand curve for the heirloom tomatoes she sells Price Quantity demanded per week 100,000 200,000 $4.00 $2.75 Sally's marginal revenue from lowering the price of tomatoes from $4.00 to $2.75 is S (Enter your response rounded to two decimal places ) Lowering the price trom $4 00 to $2 75 results in an output effect of $and a price effect of S (Enter your responses as whole numbers and inciude a minus sign ir necessary.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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Alex's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Alex produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Alex faces. As you can see, to sell the additional engine, Alex must lower his price from $75,000 to $50,000 pe fire engine. Note that while Alex gains revenue from the additional engine he sells, he a loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenu lost from the initial eight engines by selling at $50,000 rather than $75,000. Then use t green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 250 200 175 150 125 100 25 Alex 1 O True 3 S 7 QUANTITY (Fire engines) False Demand Revenue Lost Revenue…
Sally runs a vegetable stand. The following table shows two points on the demand curve for the heirloom tomatoes she sells: Price $3.50 $2.25 Quantity demanded per week 150,000 250,000 Sally's marginal revenue from lowering the price of tomatoes from $3.50 to $2.25 is $ 0.375. (Enter your response rounded to two decimal places.) Lowering the price from $3.50 to $2.25 results in an output effect of $ and a price effect of $. (Enter your responses as whole numbers and include a minus sign if necessary.)
If demand is flat, then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b C d an increase in price will reduce total revenue, indicating little pricing power. an increase in price will increase total revenue, indicating little pricing power. a decrease in price will reduce total revenue, indicating a lot of pricing power. a decrease in price will have no effect on total revenue, indicating no pricing power. Your answer
Hans is a butcher in Washington. The following contains data on prices and weekly sales at his shop Good Beef Chicken Price 9.00/lbs $4.00/lbs Quantity 400 lbs 300 lbs ShS He estimates that the own price elasticity for beef is 2 and for chicken is .75. He also estimates that the cross price elasticity for chicken is .60. His current revenue from the sale of these two goods is making a total of $4800/week. In the spirit of the return to good times and outdoor grilling, he has decided to lower the price of beef for the summer, from $9.00 to $8.55. Overall, Hans can expect to take in dollars in revenue, given the information in this problem? (Revenue = Price x sales). Record your answer without a dollar sign and without a comma. Helpful Hint: In this problem, we are not changing the price of chicken.
OOK rink erences Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna's demand curve. Mc Graw Hill Price ($) 40 36 32 28 24 20 16 12 8 4 0 4 8 12 16 20 24 28 32 36 40 Quantity per period
O WORDS POWERED BY TINY QUESTION 11 Explain why is it unlikely that a firm would sell at a price and quantity where its demand curve is price inelastic? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIU S Paragraph Arial 14px 三v A v O WORDS POWERED
Aruna owns Pottery Plus, a small firm that produces terra cotta pots for sale in the Edmonton area. The graph below shows Aruna's demand curve. Price ($) 40 36 32 28 24 20 16 12 8 4 8 12 16 20 24 28 32 36 40 Quantity per period Search 3 of 6 SAMSUNG Next > 4
c. Will Erin's total revenue rise if she increases the price from $90 to $110? d. Calculate the price elasticity of demand between $110 and $130.
MicroEconomics Practice: Eric has a taco stand in downtown San Francisco. He wants to increase his total revenue. He knows that, when tacos are $1.00, he sells 20 an hour, and when he lowers the price to $0.75, he sells 25 an hour. (a) Calculate the price elasticity of demand for Jose's hotdogs using the midpoint formula. (show the formula and your calculations) (b) Is demand elastic or inelastic? How do you know? Explain your answer. (c) Using the price elasticity of demand calculated in section A, explain whether Eric should raise or lower the price to generate more revenue.
1) Walkers’ Shoes reports the following demand schedule for its black brogues.Price 1600 800 400 200 100 50 25 12.5Quantity demanded 2 4 8 16 32 64 128 256a) For an increase in price from 50 to 100, calculate:i) The proportional change in price.ii) The proportional change in quantity demanded.iii) The price elasticity of demand for Walkers’ black brogues.b) Considering the demand schedule in the table, what do you conclude about the value of the price elasticity of demand for Walkers’ black brogues at every level of output? How would you classify the demand for such a good?c) What is the effect on Walkers Shoes’ total revenue of doubling the quantity of shoes which it supplies? What is the value of its marginal revenue? How does your answer relate to the value of the price elasticity of demand?d) The income elasticity of demand for Walkers’ Shoes is estimated to be 1.8. By how what percentage do you expect demand to increase if its customers’ incomes increase from 31,500 to 38,500?
SUonsanh uaunsaau uMo Synopsis Your friend calls you and asks to borrow $20,000 so that he can open a Sushi restaurant in his hometown. In justifying this request, he argues that there must be significant demand for Sushi and other Asian food in his hometown because there are lots of such restaurants already there and three or four new ones are opening each month. He also argues that demand for Asian food will continue to increase and he points to the large number of firms that now sell frozen Asian dishes in grocery stores. Will you lend him money? What are the risks involved in choosing to lend him money? Instructions Please write 200-500 words of text. Using the external analysis tools (PESTLE analysis or Porter's five forces analysis), support your decision. Write your answer in a clear and organized paragraph. Your answer should include a clear and precise thesis that directly addresses the question.
The following graph shows the daily demand curve for bikes in San Francisco. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 300 275 250 Total Revenue 225 200 175 150 125 100 75 50 25 Demand 3 9 12 15 18 21 24 27 30 33 36 QUANTITY (Bikes) PRICE (Dollars per bike) B.