Describe at least one factor that determines elasticity

Reference no: EM131264302

Problem 1

Assume that the price of smartphones increased from $200 to $222 per unit. The manufacturer decides to supply 12,000 units instead of 10,000. Calculate the price elasticity of supply. Is supply elastic or inelastic? Describe at least one factor that determines elasticity.

Problem 2

What is the difference between a public good and a private good? What are the principal characteristics of each? What are the two characteristics of public goods? Why is there a free rider problem when it comes to public goods? Do you consider your local police force a public good or a private good? How come? How about your local cable TV service? Please explain your answer.

Problem 3

Use the following to answer the questions below:

• z is the marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B.
• Assume MUA = z = 20 - x and MUB = z = 42 - 4y.
• Assume that the consumer has $20 to spend on A and B; that is, x + y = 20.

What is the marginal utility per dollar? What is best way to allocate the expenditure of the $20?

Reference no: EM131264302

Questions Cloud

Calculate average total cost at these different sales levels : How much economic profit can be achieved at each level of output? If price is $10.00 how much will be produced in the short run? Using the price of $4 to answer the previous questions. Calculate the Average Total Cost at these different sales levels.

Explain the long-run impact of immigration : Explain the long-run impact of immigration on those who oppose it in question (a) - What is the inflation rate in Korea? In Japan and What is the expected rate of depreciation in the Korean won relative to the Japanese yen?

Develop a plan for establishing and managing interactions : Develop a plan for establishing and managing interactions with a business's customers. - explain how the data warehouse would be designed, and indicate the main interaction methods that would be promoted to the customer.

What is meant by knowledge management : Explain how to identify customer relationships with the organization. - What is meant by knowledge management? Why is it so important in a CRM system?

Describe at least one factor that determines elasticity : Assume that the price of smartphones increased from $200 to $222 per unit. The manufacturer decides to supply 12,000 units instead of 10,000. Calculate the price elasticity of supply. Describe at least one factor that determines elasticity

Determine the residual shear stress distribution : The outer diameter of a hollow shaft is twice its inner diameter. Determine the residual stress pattern after the limit torque has been applied and removed.

The microeconomic environment of corporate operations : The microeconomic environment of corporate operations (that is, does the firm operate in an environment that is an oligopoly, or under monopolistic competition?).

Determine the residual stresses : The three members of the truss are made of ductile steel and have identical cross-sectional areas. Determine the residual stresses in each member after the load P has been increased from zero to the limit load and then removed.

Accounting equation and record effects of each transaction : The Ruiz company began operations on January 1, 2013 and on that date issued $30,000 of common stock for cash. In addition, the company borrowed $20,000 from the bank. It provided services to its customers during 2013 and received $36,000 cash. Write..

User Account

All Pages