Answer:
-3.28
Explanation:
Given that,
Initial quantity, Q1 = 2
Final quantity, Q2 = 0
Change in quantity = Q2 - Q1
= 0 - 2
= -2
Initial income, M1 = $8
Final income, M2 = $15
Change in Income = M2 - M1
= $15 - $8
= $7
Average quantity:
= (2 + 0) ÷ 2
= 1
Average income:
= (15 + 8) ÷ 2
= 11.5
Therefore,
Percentage change in quantity demanded:
= (Change in quantity demanded ÷ Average quantity) × 100
= (-2 ÷ 1) × 100
= -200%
Percentage change in income:
= (Change in income ÷ Average income) × 100
= (7 ÷ 11.5) × 100
= 60.87%
Income elasticity of demand:
= Percentage change in quantity demanded ÷ Percentage change in income
= -200 ÷ 60.87
= -3.28
C: They charge extremely high interest rates.
Answer: c. Demand decreases and supply decreases.
Explanation:
When demand for tablets decrease, the demand curve shifts to the right. The price and quantity declines. At the same time, when supply also falls, the supply curve shifts to the left leading to an increase in price and a fall in quantity.
Since, decrease in demand and supply have opposite effect on the price there is no change in the price of tablets.
Both the forces work towards reducing quantity to quantity will fall unambiguously.
Thus, the correct option is c, Demand decreases and supply decreases.
Answer:
$250
This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.
Explanation:
Data provided in the question:
Price of tomato = $10
Equilibrium quantity = 50 tomatoes
Consumer surplus = $400
Total surplus = $650
Now,
The producer surplus = Total surplus - Consumer surplus
= $650 - $400
= $250
This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.
