QUESTION 14 Consider the market for PlayStation video games. Ceteris paribus, what effect will a decrease in the price of the PlayStation gaming system (a complement) have on the market for PlayStation video games? price will fall; quantity will rise price will rise; quantity will fall price will rise; quantity will rise O price will fall; quantity will fall QUESTION 15 Consider the market for gasoline, assuming it's competitive. Ceteris paribus, what effect will a decrease in the price of crude oil (a major input), along with a decrease in demand in the demand for gas, have on equilibrium price and quantity? O price will fall; quantity will rise O price will rise; quantity will fall O price will fall; quantity might increase or decrease price might increase or decrease; quantity will fall

QUESTION 14 Consider the market for PlayStation video games. Ceteris paribus, what effect will a decrease in the price of the PlayStation gaming system (a complement) have on the market for PlayStation video games? price will fall; quantity will rise price will rise; quantity will fall price will rise; quantity will rise O price will fall; quantity will fall QUESTION 15 Consider the market for gasoline, assuming it's competitive. Ceteris paribus, what effect will a decrease in the price of crude oil (a major input), along with a decrease in demand in the demand for gas, have on equilibrium price and quantity? O price will fall; quantity will rise O price will rise; quantity will fall O price will fall; quantity might increase or decrease price might increase or decrease; quantity will fall

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned, however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(1) the concept of elasticity of demand, (2) why raisingprices without understanding the elasticity would bea bad move, (3) your recommendations for measurement, and (4) the potential impact on profits for elasticand inelastic demand
Creative Homework/Short Project Assume that you arean entrepreneur who runs a bakery that sells glutenfree breads and cakes. You believe that the currenteconomic conditions merit an increase in the price ofyour baked goods. You are concerned. however, thatincreasing the price might not be profitable becauseyou are unsure of the price elasticity of demand for yourproducts. Develop a plan for the measurement of priceelasticity of demand for your products. What findingswould lead you to increase the price? What findingswould cause you to rethink the decision to increaseprices? Develop a presentation for your class outlining(I) the concept of elasticity of demand, (2) why raisingprices without undetstanding the elasticity would bea bad move. (3) your recommendations for measurement. and (4) the potential impact on profits for elasticand inelastic demand
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Genovia has experienced exceptional growth in recent years. Its GDP per capita (orIncome) has increased from around $30,000 to $50,000 in last 5 years. Over theperiod quantity demanded of personal cars has increased from 450,000 units per yearto 600,000 units. Quantity demanded of public transport, however, has declined from10,000 buses to 7,000 buses. Calculate income elasticity of demand and tell whichproduct is a normal good and which one is inferior.
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If the price elasticity of demand is equal to infinity and the price were to rise, the quantity demanded would: O increase. O not change. O fall to zero. O decrease slightly. 21 ottv MacBook Pro F8 F9 F6 F7 000 F4 F5 F3 *
Question 10 Figure 5-2 Price $20 18 16 14 12 10- 100 200 300 400 500 600 Quantity Refer to Figure 5-2. The elasticity of demand from point B to point C, using the midpoint method would be O 0.5. О 1.3. О 1.0. O 0.75. « Previous