Studying exercise 5 ch Four-U2Continue to learn chapter Four of your textual content guide that offers with demand evaluation. All assignments needs to be answered in English. The next assignments are chosen straight out of your textual content guide. Keep in mind to indicate step-by-step the way you obtained your closing outcome. Take note of the due date of those workout routines. Submit Assignments as an attachment.Examine as well as the next ideas: Legislation of diminishing marginal utility, ordinal utility, cardinal utility, marginal utility, traits of indifference curves, good enhances, good substitutes, worth consumption curve, earnings consumption curve,. Engle curves, situation for utility maximizationEXERCISE 1You possess the next details about IPATH. The value elasticity of demand for IPATH is -2.5; The cross worth elasticity of demand for IPATH with respect to Laptops is zero.50; the earnings elasticity for IPATH is three.zero. Consider the next questions based mostly on the equipped info.a. If the worth of I PATH have been elevated by Four%, by what share would gross sales of IPATH change?b. A rise within the worth of IPATH would improve the demand for laptops by 2percentc. Supose that the worth of IPATH will increase by 5%,on the identical time the worth of laptops falls by three% and earnings elasticity will increase by 2%. What mixed impact of those modifications is anticipated with respect to gross sales of IPATHEXERCISE 2Price Mart reduces the worth of a 42 inch TV Plasma from $1,200 to $1,000. Consequently gross sales of TV Plasmas elevated from 30 items a month to 42 items a month. Calculate the worth elasticity of demand for TV Plasmas. How might we classify the demand for TV Plasmas?EXERCISE 3PRICE MART provided a whopping 10% low cost on the typical worth of TV Plasma for fathers day. Buyer response was so enthusiastic that unit gross sales rose by 15% over the earlier month’s stage,a. Calculate the purpose worth elasticity of demand for TV Plasma in the course of the month of the low cost.b. Calculate the revenue maximizing worth per unit if Worth Mart has a median wholesale value of $350 and incurs marginal promoting value of $100 per unit
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