On Sat, Sep 28, 2002 at 08:56:18PM +0300, Dekel Tsur wrote: > On Thu, Sep 26, 2002 at 11:58:41AM -0400, Dr. Richard E. Hawkins wrote: > > I've seen a few varieties of this--the depth cascades rightward instead > > of coming back on old files. I've attached a file that does this.
> Where is the file? ack. Still not quite used to mutt . . . Here's one htat does it: -- Richard E. Hawkins, Asst. Prof. of Economics /"\ ASCII ribbon campaign [EMAIL PROTECTED] Smeal 178 (814) 375-4700 \ / against HTML mail These opinions will not be those of X and postings. Penn State until it pays my retainer. / \
#LyX 1.1 created this file. For more info see http://www.lyx.org/ \lyxformat 2.15 \textclass article \language default \inputencoding default \fontscheme default \graphics default \paperfontsize default \spacing single \papersize Default \paperpackage a4 \use_geometry 1 \use_amsmath 0 \paperorientation portrait \leftmargin 1in \topmargin 1in \rightmargin 1in \bottommargin 1in \secnumdepth 3 \tocdepth 3 \paragraph_separation indent \defskip medskip \quotes_language english \quotes_times 2 \papercolumns 1 \papersides 1 \paperpagestyle default \layout Title Homework 5 \layout Date Fall 2000 \layout Author Prof. Richard Hawkins, Microeconomics \layout Standard Turn in this homework, and also Exercise 10 from the book. \layout Enumerate Price elasticity of demand is useful because it measures __________ responsivene ss to changes in __________. \layout Enumerate \begin_inset Quotes eld \end_inset Less elastic \begin_inset Quotes erd \end_inset means \begin_deeper \layout Enumerate unchanging \layout Enumerate less desirable \layout Enumerate more desirable \layout Enumerate less responsive \layout Enumerate more responsive \end_deeper \layout Enumerate The price elasticity of demand measures \layout Enumerate If something is more elastic, it suggests that (as compared to something less elastic with the same underlying variable) \layout Enumerate Does the price elasticity of demand usually vary as we move along the demand curve? How? \begin_deeper \layout Standard For the folllowing questions 6 through 16, assume that we have made the following initial observations. \layout Standard \added_space_top 0.3cm \added_space_bottom 0.3cm \align center \LyXTable multicol5 4 3 0 0 -1 -1 -1 -1 1 1 0 0 1 0 0 0 1 0 0 0 1 1 0 0 2 1 0 "" "" 4 1 0 "" "" 4 1 1 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 2 1 0 0 0 0 "" "" 0 4 1 0 0 0 0 "" "" 0 4 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" 0 8 1 0 0 0 0 "" "" Good \newline Price \newline Quantity Demanded \newline Ice Cream \newline $1.60 \newline 40 \newline Cherries \newline $.20 \newline 30 \newline Frozen Yogurt \newline $1.00 \newline 15 \layout Standard Suppose that we then observe that the price of ice cream increases to $1.76, and quantity demanded decreases to 38. For the purposes of calculating elasticity, \end_deeper \layout Enumerate Price is \layout Enumerate Quantity is \layout Enumerate The change in price is \layout Enumerate The change in quantity is \layout Enumerate The price elasticity of demand is (show your work) \begin_deeper \layout LaTeX \backslash vspace{2in} \end_deeper \layout Enumerate Characerize this demand (i.e., elastic, perfectly inelastic, etc.) \layout Enumerate How does the change affect the seller's revenue? \begin_deeper \layout Standard For questions \begin_inset LatexCommand \ref{beginCherries} \end_inset - \begin_inset LatexCommand \ref{endCherries} \end_inset , suppose that when the price of cherries changes to $.24, the quantity demanded of ice cream at the original price drops to 36. \end_deeper \layout Enumerate \begin_inset LatexCommand \label{beginCherries} \end_inset This suggests that cherries and ice cream are \begin_deeper \layout Enumerate substitutes \layout Enumerate complements \layout Enumerate inferior goods \layout Enumerate normal goods \layout Enumerate superior goods \end_deeper \layout Enumerate The relevant elasticicty would be \begin_deeper \layout Enumerate price elasticity of demand \layout Enumerate income elasticity of demand \layout Enumerate cross price elasticty \layout Enumerate price elasticity of supply \layout Enumerate cherry elasticity of ice cream \end_deeper \layout Enumerate \begin_inset LatexCommand \label{endCherries} \end_inset Calculate the elasticity. \begin_deeper \layout LaTeX \backslash vspace{2in} \end_deeper \layout Enumerate If the price of frozen yogurt changed, and we measured the relevant elasticity for the consumption of ice cream, which of the following could possibly be the measured elasticity? \begin_deeper \layout Enumerate -3 \layout Enumerate -1 \layout Enumerate -.75 \layout Enumerate 0 \layout Enumerate .5 \end_deeper \layout Enumerate Which of the following will \emph on not \emph default result in an increased elasticity? \begin_deeper \layout Enumerate share of income spent on the item increases \layout Enumerate a longer time period is considered \layout Enumerate more close substitutes exist \layout Enumerate we use a broader definition of the good \end_deeper \layout Enumerate Elasticity tends to change over time because \layout Enumerate Unit-elastic price elasticity of demand means that \layout Enumerate If a 7% increase in income causes a 10% increase in quantity for some good, what kind of good is it (normal or inferior), and what kind of elasticity of demand does it have? \layout Enumerate If a 7% increase in income causes a 5% decrease in quantity for some good, characterize it as abofe \layout Enumerate As we consider increasingly longer periods of time, what happens to the elasticity of supply, and the slope of the supply curve? \layout Enumerate A perfectly elastic demand curve has what slope? \layout Enumerate What kind of elasticity are we likely to see for demand of an addictive product such as tobacco? \the_end
