Domestic auto-makers increase the cost of automobiles

Assignment Help Business Economics
Reference no: EM137507

Q. A researcher predictable that cost elasticity of demand for automobiles in the United States (US) is -1.2, while the income elasticity of demand is 3.0. As in the subsequent year, U.S. automakers propose to increase average value of automobiles by 5%, as well as they expect consumers' disposable income to rise by 3%.

(a) If sales of nationally produced automobiles are 8 million this year, clarify how many automobiles do you expect U.S. automakers to wholesale in subsequent year?

(b) By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year?

Reference no: EM137507

Questions Cloud

Cost elasticity for hip replacement surgeries : Assume that health insurance begins to cover hip replacement surgeries that everyone interested in getting a hip replacement has health insurance.
Apply and cite at least two relevant : Apply and cite at least two relevant and respected resources within the response and list the references at the end of the response. Use APA formatting.
Independent of quantity produced : Clarify why might the Homo sapiens production possibilities curve have shifted outward to right much more rapidly than persons of Neanderthals.
Who want to engage in sports and leisure activities : A city passes the law to ban cars in its largest park on the weekends in order to make the park more inviting to people who want to engage in sports and leisure activities. Which could be described as an unintended consequence of the new law.
Domestic auto-makers increase the cost of automobiles : By how much should domestic auto-makers increase the cost of automobiles if they wish to increase sales by 5 percent next year.
Show the stages that children pass through : Explain and show the stages that children pass through in acquiring language. Comment on the theory or theories which seem to account best for facts of acquisition at various stages.
Profit-maximizing cost : Illustrate would be its profit-maximizing cost if the company were to build the bridge.
Suppose that mike cannot afford to pay the premium : Suppose that Mike cannot afford to pay the premium and lets his auto insurance policy lapse. At the time of the accident, he is uninsured. If the liability judgment against Donna $100 000, how much, if any, will Donna's insurer pay.
Marginal rate of substitution : Marginal rate of substitution between leisure as well as labor as well as the marginal product of labor in the Robinson Crusoe model.

Reviews

Write a Review

Business Economics Questions & Answers

  People believe the difficulties aisian economies

Why did people believe the difficulties Aisian economies were expericing in 1997-1998

  Arguments for trade restrictions

Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again.

  Economic growth rate

Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.

  Gun control laws for the states

You will need to determine how you will measure strict gun control laws for the states and to define what types of crimes will make up the crime rate.

  What conclusions can be drawn about market allocations

Use indifference curves to distinguish between income and substitution effects, using the above techniques explain why the demand curve slope downwards, What are the main criteria for designing a tax system, To what extent do you think the national..

  Joint venture

Suppose that firm A and firm B can form a joint venture to pursue either or both of their R&D programs.

  Yellowstone national park in order to increase park revenues

Interior Department recently announced that it will increase the entrance fees at Yellowstone National Park in order to increase park revenues.

  Consumption of fossil fuels

In your opinion should our government impose price floors and/or price ceilings in our economy.

  Use a randomization test

Provide an appropriately labeled boxplot of the data below and use a randomization test to examine whether the null hypothesis holds that male and female turtles have the same mean serum cholesterol.

  Organ procurement system

The overall effectiveness of the organ procurement system in the United States. What are its strengths and weaknesses.

  Australian medical association

Statistical analysis indicates that a=0.8 and b=0.3. The firm's owner claims the plant has increasing returns to scale.

  After-tax real interest rate

If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd