User Account

All Pages

Elucidate what is the cross elasticity of demand

Assignment Help Macroeconomics
Reference no: EM1328837

Important information about Cross elasticity of demand

Acme Tobacco is currently selling 5,000 pounds of pipe tobacco per year. Due to competitive pressures, the average price of a pipe declines from $15 to $12. As a result, the demand for Acme pipe tobacco increases to 6,000 pounds per year.

a. What is the cross elasticity of demand for pipes and pipe tobacco?

b. Assuming that the cross elasticity does not change, at what price of pipes would the demand for pipe tobacco be 3,000 pounds per year? Use $15 as the initial price.

 

Reference no: EM1328837

Questions Cloud

How can the leader help the team : How can the leader help the team realize its collective ability to succeed well beyond a typical team?
Team type in mastering virtual teams text : Identify one team type from the list in the Mastering Virtual Teams text to discuss.
Describe about current collaborative relationships : Which of the guideline elements does your organization already perform well and Which elements could your organization easily integrate into their current collaborative relationships? How?
Build a word document listing the software : The scenario is that you do volunteer work for the small, self-funded community support group. With very little money available, the group has been unable to computerize its operations.
Elucidate what is the cross elasticity of demand : Elucidate what is the cross elasticity of demand for pipes and pipe tobacco.
Illustrate is the point cross elasticity among steel : Illustrate is the point cross elasticity among steel and aluminum. Are steel and aluminum substitutes or complements
Difference between microsoft office and microsoft windows : Which applications are you likely to make use in the course of taking classes online.
The management team of nordstrom''s department store : Assume that you are part of the management team of Nordstrom's department store. The retail industry and Nordstrom's is under a great deal of pressure due to the state of the economy.
Explian solution to supply chain : The solution to Supply Chain - supply contract aid both parties in terms of their roles/responsibilities involving the supply chain

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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