1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bonufazy [111]
3 years ago
7

Consider two markets: the market for coffee and the market for hot cocoa·The initial equilibrium for both markets is the same, t

he equilibrium price is $4.50, and the equilibrium quantity is 31.0. When the price is $9.75, the quantity supplied of coffee is 73.0 and the quantity supplied of hot cocoa is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for hot cocoa. Please round to two decimal places Supply in the market for coffee is O a.more elastic than supply in the market for hot cocoa O b. the same elasticity as supply in the market for hot cocoa. c. There is not enough information to tell which has a higher elasticity. d. less elastic than supply in the market for hot cocoa.
Business
1 answer:
den301095 [7]3 years ago
7 0

Answer:

The elasticity of supply for hot cocoa is 1.43.

(D) Supply in the market for coffee is less elastic than supply in the market for hot cocoa

Explanation:

Using the midpoint formula,

Elasticity of supply for hot cocoa = (change in quantity supplied/average quantity supplied) ÷ (change in price/average price)

change in quantity supplied = 101 - 31 = 70

average quantity supplied = (101+31)/2 = 66

70/66 = 1.06

change in price = 9.75 - 4.5 = 5.25

average price = (9.75+4.5)/2 = 7.125

5.25/7.125 = 0.74

Elasticity of supply for hot cocoa = 1.06 ÷ 0.74 = 1.43. The supply for hot cocoa is elastic because the elasticity of supply is greater than 1.

Elasticity of supply for coffee = (73 - 31)/(73+31)/2 ÷ 0.74 = 42/52 ÷ 0.74 = 0.81 ÷ 0.74 = 1.09. The supply for coffee is elastic because the elasticity of supply is greater than 1.

However, supply in the market for coffee is less elastic than supply in the market for hot cocoa because the elasticity of supply for coffee is less than that of hot coffee.

You might be interested in
Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of
olga_2 [115]

Based on the above scenario, the production function is Y=K1/3L1/3H1/3.

<h3>What is  production function?</h3>

The word production function is known to be an equation that is said to be the one that shows the relationship between the quantities of productive factors (that is labor and capital) that are said to be used and also the number of product that has been obtained.

Note that from the above, the equation that stands for Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor, and H is human capital  is Y=K1/3L1/3H1/3.

Learn more about production function from

brainly.com/question/25672041

3 0
2 years ago
What is an example of an interest leading to a career choice
kramer

Answer:

Making music leading to becoming a musician, basketball leading to wanting to be in the nba, etc.

Explanation:

8 0
3 years ago
An American worker is hired by a German consulting firm operating in New York. They pay him $50,000 in wages. The new worker's c
Pachacha [2.7K]

Answer:

a. National income increases by $50,000 and factor payments to abroad increase by $20,000, so US GDP increases by $70,000

Explanation:

The German firm hired an American worker and paid him $50,000. That means that American national income will increase by $50,000.

Since the company is German, that would increase factor payments ot abroad by the difference = $70,000 - $50,000 = $20,000.

Total GDP increases by the amount of $50,000  + $20,000 = $70,000

5 0
3 years ago
Bob consumes food and housing. Suppose his marginal utility from an additional unit of food is 20 and his marginal utility from
lozanna [386]

Answer:

Option (E) is correct.

Explanation:

For utility maximization,

Bob's consumption of Housing and food should be such that:

\frac{Marginal\ utility\ of\ housing}{Price\ of\ housing}=\frac{Marginal\ utility\ of\ food}{Price\ of\ food}

Here,

\frac{Marginal\ utility\ of\ housing}{Price\ of\ housing}=\frac{100}{2}

                                                                                              = 50

\frac{Marginal\ utility\ of\ food}{Price\ of\ food}=\frac{20}{1}

                                                                                   =20

Bob is not maximizing utility, as these two terms are not equal(50 > 20).

Since the marginal utility per rupee spent on housing is greater than that on food.

Hence, Bob can increase his utility just by consuming more of housing and less of food.

7 0
2 years ago
"The fictional country of Yieng has had an influx of updated technology to its manufacturing plants and the medical field in the
mario62 [17]

Answer:

In the previous years when the country's productivity was increasing t a 75% rate, the unemployment rate must have fallen a lot and the wages must have increased. Since productivity has stopped increasing, the unemployment rate will probably start to rise since their is gap between high labor supply (due to high wages) and a weakening labor demand.

3 0
3 years ago
Other questions:
  • Marian Hobby Store pays a dividend of $0.35 per share per quarter. The next dividend will be paid to shareholders of record on F
    14·1 answer
  • What’s the purpose of a ramp meter
    11·2 answers
  • Ethical Work Climate reflects the ________ of the organization and shapes the ________ of its members.
    6·1 answer
  • Elliot wants to open a checking account.
    8·2 answers
  • Statement
    11·1 answer
  • What is liberal humanism??
    11·1 answer
  • Many people are surprised that working for a charitable organization can be as good for your career as working for a:
    15·1 answer
  • Sunland Company is about to issue $262,700 of 6-year bonds paying an 9% interest rate, with interest payable semiannually. The d
    8·1 answer
  • A transfer payment is a payment made by a. firms, but not in exchange for capital equipment. b. foreigners, but not in exchange
    12·1 answer
  • Dexter loses his breach-of-contract case against micheletta in a georgia state trial court. dexter appeals to the state court of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!