The writer is very fast, professional and responded to the review request fast also. Thank you.
Question 2
Given the products below and the events that affect them, indicate what happens to demand and/or supply, and the equilibrium price and quantity in a competitive market. Identify the determinant of demand and/or supply that causes the shift. Explain your reasoning fully in each case.
(a) Calculators. More schools require students to buy and use calculators; improved productivity shortens the time it takes to make calculators.
(b) Gasoline. Oil production declines due to a crisis in the Middle East; people take more car vacations and drive more.
(c) New homes. The average incomes fall as the economy moves into recession; the productivity of home construction workers and builders increases.
(d) Tobacco. The government cut its subsidy to tobacco farmers; more people quit smoking.
Question 3
A gasoline station very near a professional football stadium parks cars on its lot to make money on game days. Last year it charged $4.00 per car and parked 1000 cars. This year it raised the parking price to $5.00 and parked 850 cars. Did the station owner make a good economic decision in raising the parking prices from one year to the next?
Explain fully the rationale of your answer (i.e., calculate elasticity using the midpoint formula and perform the total revenue test).
Question 4
The following data shows the relationship between price and quantity demanded at four different prices for a product:
P = $11, Qd = 16
P = $9, Qd = 24
P = $7, Qd = 32
P = $5, Qd = 40
Using the midpoint formula, what is the price elasticity of demand between:
(a) $11 and $9
(b) $9 and $7
(c) $7 and $5
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more