O Q Sun Oct 3 6:52 PM Assignment 4(5) copy Page 2 of 2 - Edited Q v Q Ev DV D Aav 4. (10 points) Using your business / product from Level 1.... 1. What does the business produce? [If your business produces multiple things, please pick one to focus on] (1) 2. Who buys this product? (1) 3. When is this product purchased? (1) 4. Is the demand for the product elastic or inelastic? (1) 5. How do you know it is elastic or inelastic? (1) 6. Relate your rationale to at least 2 determinants of elasticity. (3) 7. Approximate the income elasticity for your product. (Hint: pick a number and explain why this number could be the income elasticity for your product). (1) 8. What does that number tell people about your product (1)O Q Sun Oct 3 6:52 PM Assignment 4(5) copy Page 2 of 2 - Edited Q v Q Ev DV D Aav 4. (10 points) Using your business / product from Level 1.... 1. What does the business produce? [If your business produces multiple things, please pick one to focus on] (1) 2. Who buys this product? (1) 3. When is this product purchased? (1) 4. Is the demand for the product elastic or inelastic? (1) 5. How do you know it is elastic or inelastic? (1) 6. Relate your rationale to at least 2 determinants of elasticity. (3) 7. Approximate the income elasticity for your product. (Hint: pick a number and explain why this number could be the income elasticity for your product). (1) 8. What does that number tell people about your product (1)Assignment 4 (5) copy V Page 1 of 2 - Edited A Ev ~ ~ Aav Name: ECON 100 Fall 2021 Assignment 4: Determinants of Demand and Elasticity Answer the following questions. You may turn in a typed document or a picture of a handwritten document. Just make sure the handwriting and picture are legible. 1. (3 points) What were the total quantities from Assignment 3 (Question 3) in Level 4 at a price of $1 and $10? Use these prices and quantities to calculate elasticity using the midpoint method. Be sure to show your work. Is the price elasticity of demand elastic or inelastic for movie tickets? (Q2 - Q1) (P2 - P1) Ed - - Q2 + Q1) / 2 (P2 + P1) / 2 52 - 109 (10 - 1) Ed - - (52 + 109) / 2 (10 + 1) /2 157 Ed 80.5 5.5 Ed - 2. (4 points) Do you agree with the elasticity you found in the previous problem? Why or why not? Provide 2 determinants of elasticity to support your rationale. 3. (3 points) List three things that would impact the market demand for going to the movies. Relate each to a different determinant. For each item, explain how it would increase demand.Assignment 4 (5) copy V Page 1 of 2 - Edited A Ev ~ ~ Aav Name: ECON 100 Fall 2021 Assignment 4: Determinants of Demand and Elasticity Answer the following questions. You may turn in a typed document or a picture of a handwritten document. Just make sure the handwriting and picture are legible. 1. (3 points) What were the total quantities from Assignment 3 (Question 3) in Level 4 at a price of $1 and $10? Use these prices and quantities to calculate elasticity using the midpoint method. Be sure to show your work. Is the price elasticity of demand elastic or inelastic for movie tickets? (Q2 - Q1) (P2 - P1) Ed - - Q2 + Q1) / 2 (P2 + P1) / 2 52 - 109 (10 - 1) Ed - - (52 + 109) / 2 (10 + 1) /2 157 Ed 80.5 5.5 Ed - 2. (4 points) Do you agree with the elasticity you found in the previous problem? Why or why not? Provide 2 determinants of elasticity to support your rationale. 3. (3 points) List three things that would impact the market demand for going to the movies. Relate each to a different determinant. For each item, explain how it would increase demand.Prices You Friend 1 Friend 2 Friend 3 Friend 4 Friend 5 Total $1 24 26 10 24 15 10 109 $5 12 15 8 15 12 9 71 $10 10 a 7 9 1o 8 52 $15 3 6 5 3 6 6 39 $20 5 4 3 4 4 5 25 $30 3 a 2 2 3 2 15 $50 1 2 1 1 2 1 a 4. (6 points) Ask ve friends or family members or classmates how many movies they would go see if a movie costs $1, $5, $10, $15, $20, $30, or $50. For each friend ll in a column of the table above. The information from Friend 1 goes in the third column, the information from Friend 2 goes in the fourth column and so on. Total up what you and ve friends are willing to buy at each price in the last column of the table above. 5. (3 points) Plot the prices and the total quantities from the table you created in question three and four. Be sure to label the axes with prices and quantities. Next connect the points with a line. Label this line demand. 35 30 25 Price 20 15 10