Please use 5 and 5 for point A for both markets. Ratio is 1:1. 30) What is the p
ID: 2494557 • Letter: P
Question
Please use 5 and 5 for point A for both markets. Ratio is 1:1.
30) What is the price elasticity of Honda when the price of rubber increases leading to 3 less vehicles?
A) Eps = 1.87
B) Epd = 0.53
C) Eps = 0.53
D) Epd = 1.87
31) From question 30, what is the price elasticity of Ferrari when a government decreases taxes on vehicles leading to 2 more vehicles?
A) Eps = 2.31
B) Epd = 0.43
C) Eps = 0.43
D) Epd = 2.31
32) From question 31, what is the price elasticity of Honda when consumers experience an increase in price by $3,000?
A) Eps = 0.33
B) Epd = 3.00
C) Eps = 3.00
D) Epd = 0.33
33) From question 32, what is happening in the Honda market?
A) There is a shortage
B) There is a surplus
C) Consumers increased consumption
D) Producers decreased production
34) From question 32, what is the price elasticity of a Ferrari?
A) Eps = 1.38
B) Epd = 0.73
C) Eps = 0.73
D) Epd = 1.38
35) From question 32, what is the cross-price elasticity?
A) Exy = -1.38
B) Exy = -0.73
C) Exy = 1.38
D) Exy = 0.73
36) From question 35, what is the relationship between Honda and Ferrari?
A) Substitutes
B) Normal
C) Complements
D) Inferior
Price $10 $9 $8 $8 $7 $6 $5 $4 $3 $2 $1 $0 0 1 2 3 4 5 678 9 10 Quantity 09876543210Explanation / Answer
30- B
31- C
32- A
33- B
34- C
35- D