Micro Economics: analysis of price elasticity (short and long run)

Please explain whether the following goods or services are price elastic or inelastic in both the short run and long run. a. Gasoline b. Texaco gasoline c. Salt d. Large screen TV e. Cosmetic surgery f. Lasik eye surgery g. A product or service from your organization

Micro Economics

I need some one to help me with this problems, I need to understand them so if you could explain them to me it would be great. Thank you 1) How would the following changes in price affect total revenue? Would it increase, decline, or remain the unchanged a. Price falls and demand is inelastic b Price rises and demand is ...continues

Micro Economics

1) Calculate total-revenue data from the demand schedule. Graph total revenue below your demand curve. Generalize about the relationship between price elasticity and total revenue. 2) Product price Quantity Demanded $5 1 $4 2 $3 3 $2 4 ...continues

Microeconomics

Total utility and marginal utility

Microeconomics

If George spends $5 (total) a week on good X and good Y, and if the price of the good is $1 per unit, then how many units of each good does he purchase to maximize utility?

Microeconomics

Summary If George spends $5 (total) a week on good X and good Y, and if the price of each good is $1 per unit, then how many units of each good does he purchase to maximize utility? To maximize the utility, George has to spend all his money buying one type of good. Either he buys 5 units of good X or 5 units of good Y. Qu ...continues

Microeconomics: impact tax has after an increase in demand for a product.

Suppose all firms in a perfectly competitive market structure are in long-run equilibrium. The demand for the firms' product increases. Initially, price and economic profits rise. Soon afterward, the government decides to tax most (but not all) of the economic profits, arguing that the firms in the industry did not earn them ...continues

Microeconomics: quantity of output to produce

Using the table attached, what quantity of output should the firm produce? Explain your answer.

Micro ecomonics

A. Calculate the profit-maximizing activity level. B. Calculate the company's optimal profit and return-on-sales levels. A. When quantity is expressed as a function or price, what are the Florida demand and supply curves if p = $11, Ps = $5, Y = $12,000 billion, T = 75 degrees, and PI = $6, and PK = 12.5%. B. Calculate the ...continues

Microeconomic Theory - Marshallian demand Functions & indirect utility function.

Consider the problem of maximizing u = (x1x2)2 subject to p1x1 + p2x2 = y. Derive the Marshallian demand functions and the indirect utility function; and confirm that Roy's identity holds.