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Question 1 (3 points)
Define the following with examples
a. shift in demand
b. change in quantity demanded
Question 1 options:Paragraph
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Question 2 (3 points)
When considering income elasticity, if consumer income increases and demand for a particular good decreases, we can assume that the good is:
Question 2 options:
An elastic good
An inferior good
A normal good
A superior good
Question 3 (3 points)
Which of the following is most likely a fixed cost?
Question 3 options:
property taxes
wages for hourly employees
expenditures for supplies used to produce the good or service
fuel costs
Question 4 (3 points)
Match the following:
Question 4 options:1234
The percentage change in the quantity demanded of a good or service that is associated with a one-percent change in consumer income.
1234
Price elastic
1234
The percentage change in quantity demanded associated with a one-percent change in a product’s price.
1234
Price inelastic
1.
Income elasticity
2.
Beef
3.
Price Elasticity
4.
Gasoline
Question 5 (3 points)
How can understanding elasticities be useful for healthcare managers?
Discuss both income and price elasticity of demand and give at least one example.
Question 5 options:Paragraph
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Question 6 (3 points)
Marginal costs more closely reflect both fixed and variable costs while average costs only reflect variable cost changes.
Question 6 options:True
False
Question 7 (6 points)
You know that price elasticity of demand is calculated by dividing the percent change in quantity demanded by the percent change in the price of the good or service.
Assume that an over-the counter cold medicine is introduced in the market.
The medicine is sold in a pack of 100 caplets.
Initially, the manufacturer put the product on market for a price of $20 and seven stores in a district sold 100 packs in a week.
This prompted the manufacturer to offer a sale of 25% on the product.
As a result, the same seven stores of the district sold 140 packs in a week.
Calculate the price elasticity of demand.
Show the formula for your calculation.
Would you say that demand for the medicine is elastic or inelastic?
Question 7 options:Paragraph
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Question 8 (3 points)
Cross-price-elasticity of demand tells us that the if price of Tylenol rises, then the demand for Aleve (a substitute) is likely to:
Question 8 options:
Follow that of Tylenol
Rise
Stay the same
Fall
Question 9 (3 points)
The income elasticity of demand for a product is likely to be greater . . .
Question 9 options:
the smaller the number of substitute products are available.
If the product is an imported good rather than a domestically-produced good.
the smaller the proportion of one’s income is spent on the product.
if the product is a luxury item rather than an absolute necessity.
Do you need this or any other assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code “Newclient” for a 10% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
