Consider the market for a particular brand of watch, illustrated in the figure to the right. Suppose there are network externalities in this market such that the quantity of the good demanded falls in response to the growth of purchases by other individuals (as indicated by the demand curve "Demand" in the figure). Suppose that the price is initially $14,000 where the quantity demanded is 60 watches per month. 18000- 16000- 14000- E3 12000- If the price of this brand of watch falls to $10,000, demand will increase to watches. (Enter your response using an integer.) However, without negative network externalities, demand would have increased by ☐ units, which is the pure price effect, meaning the size of the snob effect is (Enter your responses using integers.) The snob effect causes the demand for watches to be more than would otherwise be the case (without network externalities). 10000- 8000- 6000- 4000- 2000- Derab 0+ 0 20 40 60 80 100 120 140 160 Watches (per month) 80

38. Suppose that a consumer's annual(income decreased by RO 300, causing a 15% decrease in the quantity of beef the consumer demands. If the consumer has an Ancome elasticjty of demand.of 1.0 for beef, what is her new income? a. RO 2700, b. RO 3000. C. RO 1700 d. RO 3300. 15 |-0 = 300 -1,7

An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below illustrate the demand curve for wine 50- Wine Price Book Price Wine $10 Books Budget $800 40- $8 40 50 $20 $40 $8 $8 20 50 $800 $800 10 50 30어 100- 20- 90- 80- 70- 10- 80- A PCC 50+ 40- 0- 30- 10 40 50 20 30 20- Wine 10- L 2 0+ 0 10 20 30 40 50 60 70 80 90 100 Price

The equation for a demand curve is P = 2/Q. What is the elasticity of demand as price falls from 5 to 4? Whatistheelasticityofdemandasthepricefallsfrom9 to 8? Would you expect these answers to be the same?

What are 2 products with different price elasticities of demand, and how do you analyze how firms can use information about price elasticity of demand to their advantage?

Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chiefeconomist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. Thedemand curve is much more inelastic. The price elasticity of demand has decreased from:-5.76 to -2.70.”Before the campaign your price was $240 per pair of BBB Shorts. What should bethe new price?  Please show calculations.

9. Application: Elasticity and hotel rooms The Inlinwing graph input tool shows the daily demand for hotel moms at the Oceans Hotel and Casino in Atlantic City, New Jersey. To help the hotel management better understand the market, an woonomist identified three primary factors that affect the demand for me ach night. The demand factum, lung with the values corresponding to the initial demand curve, are shown in the following table and alungside the graph input tool. Demand Factor Average American household income Roundtrip airfare from New Orleans (MSY) to Atlantic City (ACY) Room ratu at the Meadows Hotel and Casino, which is near the Ocean Use the graph input tool to help you answer the following questions. You wil not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Show Transcribed Text 600 450 ****** 100 0 Demand ++ 55155 366 350 351 350 100 ans…

See Pigure entitled "Conumer move from A to B or C. Aume that this figure shows Gustavo's demand for a product called Daton. If Gustavo ia originally at point A, which ot the following can cause him to move to point C. For each of the options gives ume that all other determinants of demand (other than the change specified) remain unchanged. Connet move bom A to B or C 40 20 10 60 Quaitity ) Decrease in price of Daton's substirute Caton. 2) Deerease in price of Daton 3) Increase in price of Daton 4)Inerease in Gustavo's income

Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by The graph below depicts the monthly demand facing the only Internet service provider (ISP) that serves customers in a small town. Currently, the ISP charges a price of $110 per month and serves 8 thousand customers. Type here to search O Part 2 Price 100 150 140 130 120 100 10 Internet Service Number of Customers in 1,000 4 Suppose the ISP is considering decreasing the price it charges by $20. Because of the price effect, total revenue will fall by $ thousand. Suppose the ISP is considering decreasing the price it charges by $20. Because of the output effect, total revenue will rise by S thousand.

How did the market for milk get impacted as COVID induced lockdown started in the U.S. in mid-March 2020? Be sure to state how the demand and supply curves and elasticities changed or shifted if at all?