Answer to Question #129505 in Microeconomics for Kgotso

Question

You are told that the price elasticity of demand for biltong is estimated to be 1.89.
Use this information to answer the questions that follow.
Marks will be awarded for your ability to integrate theory with the scenario provided.
Q.2.1  Identify any six factors that can impact the price elasticity of demand for
biltong; and
 Explain how each one can be applied to achieve this elasticity coefficient.
(12)

Q.2.2 Based on an elasticity coefficient of 1,89, explain how biltong producers can
increase total revenue from the sale of biltong.
(4)
Q.2.3 Fitness enthusiasts consider biltong to be an excellent source of protein and a
good alternative to drinking a protein shake.
Based on this information, would you expect the cross elasticity of demand for
biltong to be positive or negative if the price of protein shakes increases? Explain
your answer.

Answer 1

Dear Kgotso, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order