What degree of elasticity does chipotle burritos exhibit, Macroeconomics

Assignment Help:

Economists estimate the short run elasticity of demand for a Chipotle burrito is -2.25.

i)    What degree of elasticity does Chipotle burritos exhibit?

ii)    A 1% change in the price of Chipotle burritos would do what to the quantity demanded of Chipotle burritos?

iii)   What would happen if Chipotle lowered its burrito price by 2% to its sales (numeric answer)?

iv)   What happens to Chipotle's total revenue if it were to lower its price by 2%?

 


Related Discussions:- What degree of elasticity does chipotle burritos exhibit

Newton''s donuts has been estimated, The demand function for Newton's Donut...

The demand function for Newton's Donuts has been estimated as follows: Qx = -14 - 54Px + 45Py + 0.62Ax where Qx represents thousands of donuts; Px is the price per donut; Py

Relate overnight rate with money supply, Relate overnight rate with money s...

Relate overnight rate with money supply When the overnight interest rate decreases, the money supply increases When the overnight interest rate increases, the money supply d

Inflation occured over this time period, In January of 1997, the U.S. Consu...

In January of 1997, the U.S. Consumer Price Index (CPI) stood at 159.1. By January of 2008, the level had risen to 211.1. What was the average annual rate of inflation over this ti

Explain the term unit labor costs, An article published in Die Zeit on 25 M...

An article published in Die Zeit on 25 March 2010 analyses the German policy that allows for only moderate increases in wages. According to this article, the unit labor costs in Ge

What are the potential advantages of economic growth, What are the potentia...

What are the potential advantages of economic growth? The potential advantages of growth include • More goods and services are accessible to satisfy more want and requireme

Show factors that govern the price elasticity of demand, Q. Show factors th...

Q. Show factors that govern the Price Elasticity of Demand? a. The number and closeness of the substitutes- The more and the better the substitutes, the grater is the Price Ela

Manufacturer is considering purchasing equipment, Manufacturer is consideri...

Manufacturer is considering purchasing equipment, which will have the following financial effects: Year Disbursements Receipts 0 $4400 $0 1 660 880 2 660 1980 3 440 2420 4 220 1760

Says law , is there a graph for says law?

is there a graph for says law?

What is inflation, Q. What is Inflation? Inflation between two points i...

Q. What is Inflation? Inflation between two points in time is defined as percentage increase of price index between these two points in time.  Comments: Price inde

Write Your Message!

Captcha
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