The assignment should have a minimum of 1500 words (spread roughly evenly throughout the questions) and have a minimum of 4 scholarly sources. Don’t be excessively wordy in an attempt to hit the 1500-word requirement. No amount of words can make up for an incorrect answer. 1. What effect if any does each of the following events have on the price elasticity of demand for corporate-owned jets? a) A decline in corporate earnings causes firms to cut their travel budgets which in turn causes expenditures on corporate jet travel to become a larger fraction of total spending on corporate travel. b) A new much more fuel-efficient corporate jet is introduced. c) Further deregulation of the commercial airlines industry substantially increases the variety of departure times and destinations offered by commercial airlines. d) The cost of manufacturing corporate jets rises. 2. Assume that the demand for cosmetic or plastic surgery is price inelastic. Are the following statements true or false? Explain. a) When the price of plastic surgery increases the number of operations decreases. b) The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded. c) The marginal revenue of another operation is negative. d) Changes in the price of plastic surgery do not affect the number of operations. e) Quantity demanded is not very responsive to changes in price. f) If more plastic surgery is performed expenditures on plastic surgery will decrease. 3. Fill in the blanks: a. The price elasticity of demand for a firm’s product is equal to –1.75 over the range of prices being considered by the firm’s manager. If the manager increases the price of the product by 9 percent the manager predicts the quantity demanded will ________ (increase decrease) by ________ percent. b. The price elasticity of demand for an industry’s demand curve is equal to –1.75 for the range of prices over which supply decreases. If total industry output is expected to decrease by 14 percent as a result of the supply decrease managers in this industry should expect the market price of the good to ________ (increase decrease) by ________percent. 4. Use the linear demand curve shown below to answer the following questions. a. The point elasticity of demand at a price of $500 is _________. b. The point elasticity of demand at a price of $175 is _________. c. Demand is unitary elastic at a price of $_________. d. As price falls |E| __________________ (gets larger gets smaller stays the same) for a linear demand curve. ‘
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more