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    Elasticity Numerical and Theory Part 2

    Uploaded by

    Ismith Pokhrel
    The document provides examples of calculating different types of elasticities, including: 1. Calculating elasticity of supply using the arc and proportional methods between different price and quantity combinations. 2. Calculating price elasticity of supply at different price points. 3. Calculating arc and average elasticities between price and quantity combinations. 4. Calculating arc cross price elasticity between two products based on a change in their prices and the resulting change in sales. 5. Calculating price elasticity of supply using a supply function. 6. Calculating point and arc elasticities of demand using a demand function. 7. Defining advertisement elasticity of demand and its types

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    Elasticity Numerical and Theory Part 2

    Uploaded by

    Ismith Pokhrel
    72 views1 page
    The document provides examples of calculating different types of elasticities, including: 1. Calculating elasticity of supply using the arc and proportional methods between different price and quantity combinations. 2. Calculating price elasticity of supply at different price points. 3. Calculating arc and average elasticities between price and quantity combinations. 4. Calculating arc cross price elasticity between two products based on a change in their prices and the resulting change in sales. 5. Calculating price elasticity of supply using a supply function. 6. Calculating point and arc elasticities of demand using a demand function. 7. Defining advertisement elasticity of demand and its types

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    elasticity numerical and theory part 2

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    The document provides examples of calculating different types of elasticities, including: 1. Calculating elasticity of supply using the arc and proportional methods between different price and quantity combinations. 2. Calculating price elasticity of supply at different price points. 3. Calculating arc and average elasticities between price and quantity combinations. 4. Calculating arc cross price elasticity between two products based on a change in their prices and the resulting change in sales. 5. Calculating price elasticity of supply using a supply function. 6. Calculating point and arc elasticities of demand using a demand function. 7. Defining advertisement elasticity of demand and its types

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views1 page

    Elasticity Numerical and Theory Part 2

    Uploaded by

    Ismith Pokhrel
    The document provides examples of calculating different types of elasticities, including: 1. Calculating elasticity of supply using the arc and proportional methods between different price and quantity combinations. 2. Calculating price elasticity of supply at different price points. 3. Calculating arc and average elasticities between price and quantity combinations. 4. Calculating arc cross price elasticity between two products based on a change in their prices and the resulting change in sales. 5. Calculating price elasticity of supply using a supply function. 6. Calculating point and arc elasticities of demand using a demand function. 7. Defining advertisement elasticity of demand and its types

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    combination A B C D E

    Price (Rs.) 10 20 30 40 50
    Quantity 1000 2000 3000 4000 5000
    supply(units)

    a. Compute elasticity of supply at movement from B to E and C to A by arc method


    b. Compute elasticity of supply at moment from B to D by proportional method
    c. Compute price elasticity of supply at point B,C and D.

    Consider the following supply schedule

    combination A B C D E
    Price (RS.) 6 5 4 3 2
    Quantity 6000 5500 4500 3000 0
    supply(units)
    a. Compute elasticity of supply at movement from B to D by proportional method.
    b. Compute elasticity of supply at movement from B to C by average method.
    c. Compute the price elasticity of supply at point C and E.

    6. A retailer has noticed from the past several months, sales of product of X has been closed to 200
    units per week. On two occasions, however, sales has declined to 120 units per week. The retailer
    notes that during two periods , the store has reduced Y’s price from Rs.5 to Rs.4
    a. what is arc cross price elasticity between X and Y
    b. What level of sales for X would you predict if the price of Y is increased to Rs.6 ?

    7. suppose a supply function is represented by Q= 20 +2P. calculate price elasticity of supply when price
    per unit is Rs.10.

    8. A publishing company plans to publish a book. From the sales data of other publishers of similar
    books, it works out the demand function for the book as Qd= 500-5P.
    a. Point elasticity of demand at price Rs.20
    b. Arc elasticity for a fall in price from RS.25 to Rs.20.

    9. Define advertisement elasticity of demand. Explain its types.


    10. Explain the importance of cross elasticity of demand to a business firm.
    11. state the degree of price elasticity of supply.

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