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Please answer all the questions Determine if the demand curve will increase shift right or decrease shift left for the specified good given the event that

Please answer all the questions Determine if the demand curve will increase (shift right) or decrease (shift left) for the specified good given the event that happened. A. Adidas Shoes. Adidas hires Kanye West to design their athletic wear and sports sneakers. B. Big Macs. McDonald’s increases the price they charge for fries and a soda. C. Coffee. California legislators pass a law requiring coffee suppliers to place “may cause cancer” labels on all coffee products. D. Arthritis Medication. The elderly population in the United States increases by 10% while the adolescent population increases by 5%. E. Gas Automobiles. The federal government provides a subsidy to automobile manufacturers that lowers the cost of making hybrid cars so Chevrolet decreases the price of the Volt from $33,000 to $25,000. 3. The price of a tablet falls from $80 to $50 after a newer version is released, resulting in an increase in purchases of the tablet from 100 units to 120 units. Calculate the price elasticity of demand. Is the demand for the tablet elastic or inelastic? 4. You get a new job that increases your annual salary by 10%. With a higher salary, your demand for steaks decreases by 2%. Calculate the income elasticity of demand for steaks. Indicate if the good is normal or inferior. 5. The price of a hamburger at McDonald’s increases from $2.50 to $3.00. As a result, the quantity demanded for hamburgers at Burger King increases from 500 to 600 per day. Calculate the cross-price elasticity of demand. Indicate the relationship between the goods (compliment, substitute or unrelated).

Jun 06 2020 View more View Less

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