Suppose that Super Market increased the price of a dozen free-range eggs from $5.50 to $6.50. As a result, it found that the daily quantity sold fell from 42 to 38 dozen. a) What is the price elasticity coefficient of demand for eggs? Round your answer to 1 decimal place. b) What was Super Market's total revenue from eggs before and after the price change? Before the price change: $ After the price change: $ c) What does your answer to (b) suggest about the price elasticity of demand for eggs? The price elasticity of dema or eggs is [(Click to select) Inelastic rag The following week, Super Market increased the price of a dozen muffins from $16.00 to $19.00. The result was a drop in the daily quantity of muffins sold from 10 to 8. d) What is the price elasticity coefficient of demand for muffins? Round your answer to 2 decimal places. e) What was Super Market's total revenue from muffins before and after the price change? Before the price change: $ After the price change: $ f) What does your answer to (e) suggest about the price elasticity of demand for muffins? The price elasticity of demand for muffins is [(Click to select)v Inelastic or elastic Suppose that the price of President's Choice macaroni and cheese decreased from $12 to $10 per case, and at the same time, the quantity of Kraft macaroni and cheese sold dropped from 150 to 100 cases. a) What is the cross-elasticity of demand between the two products? Round your answer to 2 decimal places. b) What is the relationship between the two products? They are (Click to select)v) . Sustitutes or permanets The graph below shows a demand curve. a) What is the value of the slope of the demand curve? Remember to enter a minus (-) sign to indicate negative values. D) What is the elasticity of demand between points a and b, and between points c and d? Round your answers to 2 decimal places. a and b: c and d: Price c) At what price is the elasticity of demand equal to one? d) At what price would consumers spend the most on this e) Between what prices is demand inelastic? Quatity per period Between a low price of ]and a high price of he graph below shows the market for oats. 8) At the present equilibrium, what is the total revenue received by farmers (in millions of dollars)? b) Suppose that the oat industry had a very good harvest and the supply increased by 40 supply curve in above shown graph. Plot only the endpoints of the curve above and position those points on the edge the graphing area. c) What will be the new total revenue received by farmers (in millions of dollars)? d) What does this suggest about the elasticity of demand for oats? Demand is [(Click to select)v] Inelastic or elastic or unitary 10 20 30 40 50 60 80 9100 120 Quantity per period (in millions of bushels) The table shows the average income of households and the quantity demanded of products M and N at different prices and levels Year Average Income Pr M Quantity of M Price of N Quantity of N a) What is the price elasticity of demand for product M between years 1 and 2? Round your answers to 2 decimal places. b) What is the price elasticity of demand for product N between years 2 and 3? Round your answers to 2 decimal places. c) What is the income elasticity of demand for product M between years 3 and 4? Round your answers to 2 decimal places. d) What is the income elasticity of demand for product N between years 3 and 4? Round your answers to 2 decimal places. e) What is the cross-elasticity of demand of product M for a change in the price of product N between years 2 and 3? Round your answers to 2 decimal places and remember to enter a minus (-) sign to indicate negative values. Trader Tom delivers boxes of tomatoes (and sometimes other perishable items) to two remote towns in northern Alberta. The demand schedules for tomatoes in each of the towns are shown in table below. a) If during a particular week Tom has only four boxes to deliver, how many boxes should he deliver to each town if he wishes to maximize his total revenue? Town A: boxes; Town B box Total revenue is $ b) What would be your answer if Tom had six boxes the next week? Town A: : Town B: Total revenue is $ c) How many boxes should Tom deliver to each town-if available-to maximize his total revenue? Town A: : Town B:[ Total revenue is $ The data for five-kilo boxes of lobsters are given in the table below Quantity Quantity Supplied Quantity Supplied Price (before tax) (after tax) 108 840 110 120 a) Before the tax, what are the equilibrium price and quantity? Price: $ Quantity. b) Fill in the Quantity Supplied (after tax) column in the table shown above, assuming that a $20-per- unit excise tax is put on the product. c) What are the new equilibrium price and quantity? Price:: Quantity: consumer? d) What portion of the $20-per-unit excise tax is paid by the seller, and what portion is paid by the Paid by seller: %: Paid by consumer: Under what conditions will the consumer pay all of the excise tax placed on a particular product? emand for the product is [(Click to select) ] perfectly inelastic or perfectly elastic