FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION TWO (a) Given a demand function of the linear form: Q=1000-20p. Calculate and interpret the point elasticity of demand when p=100 and Q-800 and

QUESTION TWO
(a) Given a demand function of the linear form:
Q=1000-20p. Calculate and interpret the point elasticity of demand when p=100 and Q-800 and discuss the importance of the concept of elasticity of demand to managers and government (10marks)
(b) Explain the concept the law of variable proportions and its reliance in management of a firm.
(5marks)

Step by Step Solution

★★★★★

3.42 Rating (149 Votes )

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below a The point elasticity of demand is cal... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Theory and Applications with Calculus

Microeconomics Theory and Applications with Calculus

Authors: Jeffrey M. Perloff

3rd edition

133019934, 978-0133019933

More Books

Students also viewed these Economics questions

Question

★★★★★
A linear industry demand function of the form Q = a + bP + cM + dP R was estimated using regression analysis. The results of this estimation are as follows: a. Is the sign of b? as would be predicted...

Answered: 1 week ago

Question

★★★★★
A price-taking firm's variable cost function is where Q is its output per week. It has a sunk fixed cost of $3,000 per week. Its marginal cost is What is its profit-maximizing output when the price...

Answered: 1 week ago

Question

★★★★★
1: The individual demand function of the consumer is MWTP = 12-1/2Q where Q is the quantity of a private good. How many units of the good does the consumer buy if the price is 6? Please show the...

Answered: 1 week ago

Question

★★★★★
Tort cases are so common that it is likely you or someone you know has been involved in a tort case. If so, share what the case was about, what the outcome was, and how you felt about the case and...

Answered: 1 week ago

Question

★★★★★
What is the historical cost concept and how does it relate to verifiability?

Answered: 1 week ago

Question

★★★★★
State how power, politics, and ethics affect behavior, human relations, and performance.

Answered: 1 week ago

Question

★★★★★
Do you think that burnout, engagement and boredom are contagious, that is that they spread from one employee to another? Why would this (not) be the case? Learning by Doing

Answered: 1 week ago

Question

★★★★★
On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling...

Answered: 1 week ago

Question

★★★★★
What is the value of the decay constant (in y1 ) and mean lifetime (in y) of 40K, which has a half-life of 1.29Gy

Answered: 1 week ago

Question

★★★★★
What are the main issues that the traditional approach emphasizes in respect to Apples dividend policy? What are the main issues that the behavioral approach emphasizes in respect to Apples dividend...

Answered: 1 week ago

Question

★★★★★
Create a query that SELECT all of the EMPLOYEES from the EMPLOYEE TABLE that are Mangers. Include Employee ID first name, Lastname and Salary (Hint: Self Join)

Answered: 1 week ago

Question

★★★★★
Search for 5 examples of Cloud-based Hotel PMS and explain its features and benefits.

Answered: 1 week ago

Question

★★★★★
Productivity gains have fueled the expansion of American business over the last 30 years including through several jobless recoveries. A) What are the only two ways to increase productivity?

Answered: 1 week ago

Question

★★★★★
Describe how control charts are drawn and used to determine if a process is out of statistical control. Explain the International Standards for quality documentation. Introduction Developing...

Answered: 1 week ago

Question

★★★★★
Select two or three of their attributes that Elon Muskshould either immolate or avoid in professional life. Define, cite, and apply these traits. Provide examples from your research, cite your...

Answered: 1 week ago

Question

★★★★★
Consider a project in which you are currently involved (or in which you have recently been involved). Describe the two different types of contracts that is available for you to use, and which one...

Answered: 1 week ago

Question

★★★★★
Assignment (Library Borrowing System) by java programming Delivery Submit your assignment on the Blackboard ONLY. Make sure to add your names / IDs / Section / Doctor name / Assignment number, as...

Answered: 1 week ago

Question

★★★★★
Under what conditions is the following SQL statement valid?

Answered: 1 week ago

Question

★★★★★
Two linear demand curves go through the initial equilibrium, e1. One demand curve is less elastic than the other at e1. For which demand curve will a price increase cause the larger consumer surplus...

Answered: 1 week ago

Question

★★★★★
What were the welfare effects (who gained, who lost, what was the deadweight loss) of the gasoline price controls described in Chapter 2? Add the relevant areas to a drawing like Figure 2.14. Figure...

Answered: 1 week ago

Question

★★★★★
A firm's short-run cost function is C(q) = 200q - 6q2 + 0.3q3 + 400. Determine the fixed cost, F; the variable cost function, AVC; the average cost, AC; the marginal cost, MC; and the average...

Answered: 1 week ago

Question

★★★★★
To compensate for the effects of inflation during their retirement years, the Pelyks intend to purchase a combination of annuities that will provide the following pattern of month-end income: Rounded...

Answered: 1 week ago

Question

★★★★★
Canadian Pacific Class B preferred shares have just paid their quarterly $1.00 dividend and are trading on the Toronto Stock Exchange at $50. What will the price of the shares have to be three years...

Answered: 1 week ago

Question

★★★★★
The monthly payments on a $30,000 loan at 10.5% compounded monthly were calculated to repay the loan over a 10-year period. After 32 payments were made, the borrower became unemployed and, with the...

Answered: 1 week ago

Previous Question Next Question