ECON251: Microeconomics - Elasticity of Demand - Midpoint Method - Economics Assignment Help

Assignment Task:

Problem 1: Multiple choice questions:

1. In Egaila, real estate developers are building new apartments close to campus. If professors want to pay the lowest rent possible, should they hope that demand for apartments is elastic or inelastic?
a. Elastic
b. Inelastic
c. Unit elastic
d. None of the above

2. The elasticity of oil demand has been estimated at -0.5. Does a 10% rise in oil prices increase or decrease total revenues to the oil producers?
a. Increase
b. Decrease
c. Stay unchanged
d. None of the above

3. The price elasticity of demand is:
a. the ratio of the percentage change in quantity demanded to the percentage change in price.
b. the responsiveness of revenue to a change in quantity.
c. the ratio of the change in quantity demanded divided by the change in price.
d. the response of revenue to a change in price.

4. If demand is price elastic, then:
a. a rise in price will raise total revenue.
b. a fall in price will raise total revenue.
c. a fall in price will lower the quantity demanded.
d. a rise in price won't have any effect on total revenues.

5. A 10% increase in the price of movie ticket leads to a 15% decrease in the number of tickets sold, indicating the demand for movie ticket is:
a. elastic.
b. inelastic.
c. unit elastic.
d. Can not tell from the information given

Problem 2: Show your calculations to prove your answers

1. If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, calculate the change in the quantity demanded, will it increase or decrease?

2. If the elasticity of demand for spring break packages to Dubai is -5, and if you notice that
this year in Dubai the number of packages demanded increased by 10%, then what
happened to the price of Dubai vacation packages?

Problem 3: Show your calculations to prove your answers

In Sudan, 2018 was a bad year for growing wheat. And as wheat supply decreased, the price of wheat rose dramatically, leading to a lower quantity demanded.

a) Using the midpoint method, calculate the price elasticity of demand for wheat. Conclude about the Demand elasticity( elastic, inelastic, unit elastic)

b) According to your calculation, what can you conclude about the type of this good?

c) According to your calculation, what do you expect will happen to Total Revenue when Price increases in 2018?

This ECON251: Economics Assignment has been solved by our Economics Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.