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Please help with this.thanks 5) Total revenue will increase if the price goes_ and demand is 6) Producers of Adidas consider Nike to be close
Please help with this.thanks
5) Total revenue will increase if the price goes_ and demand is 6) Producers of Adidas consider Nike to be close competition to (or a close substitute of) their product. If that is correct, what is true from the following when Adidas estimates the change in quantity demanded of their own product when the price of Nike changes? a. Cross price elasticity of demand (Ecp) is positive and greater than 1 b. Cross price elasticity of demand (Ecp) is positive but less than 1 c. Cross price elasticity of demand (Ecp) is negative d. Income elasticity of demand (E)) is positive 7) In the market for tacos, you observe that the equilibrium price has increased and equilibrium quantity has decreased. This can be explained by: a) An increase in the price of tortillas used to make taco b) There are fewer taco shops () An increase in the incomes of taco consumers d) Sandwich producers reduce their prices of their sandwiches, which are considered close competition to tacos 7) For products like cigarettes, consumers that smoke them tend to be very addicted to them. However, for producers, getting access to inputs to produce cigarettes is rather easy. As a result, what can we expect from the price elasticity of demand and supply in the market for cigarettes? a. Demand is elastic, but supply is inelastic b. Demand is inelastic and supply is inelastic c. Demand is elastic and supply is elastic d. Demand is inelastic, but supply is elastic 8) If | Ed | =0, which of the following is true? a. The demand is perfectly elastic b. The demand curve is a vertical line C. Both a) and b) are true d. Neither a) nor b) is trueStep by Step Solution
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