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1. For each of the following, calculate the price elasticity coefficient for demand and supply. Determine the elasticity type. a. After a 40 percent price
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For each of the following, calculate the price elasticity coefficient for demand and supply. Determine the elasticity type. a. After a 40 percent price reduction, the number of cans demanded for a soft drink increases by 30%. b. Following a 6% increase in rentals, the number of available flats increases by 8%. c. When the price of a small burger drops from RM5 to RM4, the number of small burgers required at a restaurant increases from 60 to 80 per week. d. Each month, 10,000 gas grills were delivered at a cost of RM200. Because of the cost since the price increased to RM250, 14,000 are supplied each month. e. Following an increase in the rental amount from RM2 to RM2.5, the number of DVDs demanded from a movie rental service each weekend has decreased from 500 to 400.Based on the table, answer the following questions Price per item (RM) Quantity Demanded Quantity Supplied 1.25 150 2.50 140 50 3.?5 125 5.00 105 70 6.25 80 7.50 50 8.75 10 100 10.00 0 110 a. Determine the price elasticity of demand and supply as the price rises from RM 2.50 to RM 5.{]{]. Indicate the elasticity type for each. b. When the price drops from RM 8.75 to RMSDU, calculate the price elasticity of demand and supply. Indicate the elasticity type for eachStep by Step Solution
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