1.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of demand for BMW M3s?
A) 5.33 B) 6.33
C) 7.33 D) 8.33
2.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of demand for Mercedes Benz C43s?
A) 5.33 B) 6.33
C) 7.33 D) 8.33
3.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of supply for Mercedes Benz C43s?
A) 1.33 B) 2.33
C) 3.33 D) 4.33
1.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of demand for BMW M3s?
A) 5.33 B) 6.33
C) 7.33 D) 8.33
2.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of demand for Mercedes Benz C43s?
A) 5.33 B) 6.33
C) 7.33 D) 8.33
3.) Christian has an income of $60,000 and plans on purchasing a BMW M3. He found out that he will be promoted to manager at his firm increasing his salary to $80,000. BMW M3 announced that it will increase the price of its M3 from $70,000 to $72,000 due to an increase in demand. BMW is forecasting a decrease of quantity demanded from 15,000 cars to 12,000 cars. Meanwhile, Mercedes Benz finds out about BMWs decision to increase its price, so it decreases its price of the C43 from $72,000 to $70,000 thereby increasing its quantity supplied from 28,000 to 30,000 cars. Mercedes Benz hopes to increase the quantity demanded from 17,000 cars to 20,000. What is the price elasticity of supply for Mercedes Benz C43s?
A) 1.33 B) 2.33
C) 3.33 D) 4.33
