also year 1 Econ question , thanks

b, A. Economics Corner aimucmnm Correct the common errors made by students in the previous works. \"Q: Suppose the price of orange in countryA increased from 51.6 to $2, and the quantity of orange demanded decreased from 3,000 tons to 2,200 tons. Calculate the price elasticity of demand of orange Student's' work: 5471 ( I'LFT BAA TH (2L What is wrong with the above answer? Correct it. Topic 4: Elasticities and Applications (Tutorials Exercises) Semester 2 Topic 4: Elasticities and Applications (Tutorials Exercises) Semester 2 B. Integrated Question (b) Base on your answers in part (a), should the hotel increases the room rate to $12,000 from the perspective of this typical Tokyo hotel? Explain. Q1. The following information summarizes the demand schedules of a typical Tokyo hotel in two different periods of time: Room rate Quantity demanded Quantity demanded ($) (rooms (rooms) (2-week hotel package) (May to June) (July to August) 6,000 ,00 850 8,000 500 750 10,00 400 650 2,000 300 550 16,00 200 450 18,00 100 350 (a) Calculate the price elasticity of demand of hotel rooms in the period of May to June and in the period of July to August respectively if the room rate increases from $10,000 to $12,000 using the mid-point method. Show your workings and round the answer to two decimal places. P. 2 of 5 P. 3 of 5Topic 4: Elas s and Applications (Tutorials Exercises) Semester 2 Topic 4: Elastic es and Applications (Tutorials Exercises) Semester 2 02. Lab Made Liquid Nitrogen Ice Cream Laboratory is the rst company introd ucing the made-to-order liquid ' C. Multiple Choice QUEStions 5;, nitrogen ice cream in Hong Kong. Their shops are located in Tsim Sha Tsui and Tai Hang where there are V lots of shopping malls and food courts. 1. The price elasticity of demand for a good will be relatively large when A. there are no good substitutes available for the good. Suppose alter several months of operation, the company increases their prices of ice cream to a much 3- the time Peri\"d i" \"\"25\"\" '5 rElame\"! 5'19"- higher level and hope to earn higher revenue as they are the rst seller of madeto-order liquid nitrogen C. the 800d is a \"1me rather than 3 NECESSW' ice cream in Hong Kong. However, the fact was that they were suffered from the loss of revenue after D-A" 0f the above are COFFECL increasing the price. Explain why this is possible with a diagram. (Ref: 151651) 2. Economists compute the price elasticity of demand as the A. percentage change in price divided by the percentage change in quantity demanded. B. dwange in quantity demanded divided by the change in the price. C. percentage change in quantity demanded divided by the percentage change in price. D. percentage change in quantity demanded divided by the percentage change in income. 3. The midpoint method is used to compute elastich because it A. automatically computes a positive number instead of a negative number. B. results in an elasticity that is the same as the slope of the demand curve. C. gives the same answer regardless of the direction of change. D.automatically rounds quantities to the nearest whole unit. 4. When the price of candy bars is $1.00, the quantity demanded is 500 per day. When the price falls to $0.80, the quantity demanded increases to 600. Given this information and using the midpoint method, we know that the demand for candy bars is A. inelastic. B. elastic. C. unit elastic. D.perfectly inelastic. 5. The supply of aged cheddar cheese is inelastic, and the supply of bread is elastic. Both goods are considered to be normal goods by a majority of consumers Suppose that a large increase in income tax decreases the demand for both goods by 10%. The equilibrium price will A. increase in both the aged cheddar cheese and bread markets. B. increase in the aged cheddar cheese market and decrease in the bread market. C. decrease in the aged cheddar cheese market and increase in the bread market. D.decrease in both the aged cheddar cheese and bread markets. at g; \"t