What happens when there are very few substitute goods? (a) Demand would tend to be price inelastic (b) Demand would tend to be price elastic (c) Supply would tend to be price inelastic (d) Supply would tend to be price elastic (e) None of the above
Q: Commodities X and Y have equal price elasticity of supply. The supp from 400 units to 500 units due…
A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…
Q: True or false. Midpoint elasticity is greater than 1.
A: The ed is calculated as % change in Qd to % change in P. The ed can be calculated by different…
Q: A hotel wants to analyze its room pricing prior to a major promotional effort. Currently the…
A: In the question above, it is given : Standard price of the room per night = $150 Elasticity of…
Q: The price elasticity of demand increases with the length of the period considered because O A)…
A: Elasticity of demand measures the responsiveness of quantity demanded of a good, to a given change…
Q: 23.The base price for a product is $100 and the variable cost is $60. The quantity that was sold is…
A: ANSWER we are given that base price is $100 and the variable cost is $60, let's assume that fixed…
Q: Price elasticity of supply in the short run and long term
A: Price elasticity of supply is the responsiveness change in the quantity supplied of a product when…
Q: price that will result in 15 percent rise in its demand.
A: # the ratio of the percentage change in the quantity demanded by the percentage change in price…
Q: Number of Cheeseburgers Price Demanded (per cheeseburger) (per week) $8 3 $6 5 a. Calculate the…
A: Elasticity=∆q/∆p×p/q
Q: ELASTICITY -What type of elasticity occurs and what is the financial result if: • The elasticity is…
A: When the value of elasticity is less than 1, elasticity is said to be inelastic.
Q: The firm’s vice president in charge of marketing believes that every 8% decrease in the selling…
A: Decrease in price = -8% Increase in quantity = 26% Elasticity of demand = % change in Qty.% change…
Q: Economic conditions and government regulations play a vital role in determining product price.”…
A: Yes , Economic conditions and government regulations regulations play a vital role in determining…
Q: Elasticity
A: Elasticity refers to the % change in quantity demanded due to % change in price. It is the…
Q: The inability of buyers to distinguish between high and low quality products before they purchase…
A: Since sellers know about the quality of the good and buyer do not know about the quality of goods,…
Q: Supply and demand :What are some products with high price elasticity of demand and why?
A: To understand what is high price elasticity of demand, we need to understand how demand responds…
Q: D. As a result of an economic boom in Calgary, the average income increases from 2,800 to 7,700 per…
A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…
Q: The price elasticity of demand increases with the length of the period considered because consumers…
A: Price elasticity of demand is the responsiveness of quantity demanded to changes in price. It shows…
Q: Pricing Scenario: You just won a new laptop in a contest, and you decide to sell your old one. You…
A: In economics, elasticity refers to the degree of proportionate change in quantity demanded or…
Q: After a destructive hurricane in Southeast Texas, gasoline prices around the country increased…
A: LEither intentionally or subliminally, the issue of elasticity surfaces for buyers and producers in…
Q: Elasticity of supply tends to be greater when * inputs are specialized.time period allowed for…
A: The elasticity of supply measures the quantitative change in supply following change in the price…
Q: If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and…
A: Elasticity of demand = % change in quantity demanded / % change in price.
Q: The demand for a good will be less price elastic, Select one: a. The larger is the percentage of…
A: Any change in market factors will directly or indirectly influence the buying decision of a consumer…
Q: Margin of Increase in Demand more than the Margin of Increase in Supply •Margin of Increase in…
A: a) Margin of increase in demand more than the margin of increase in supply. b) Margin of Increase…
Q: The demand is more price-elastic: A. If the product is a large part of the consumer's budget. B.…
A: The elastic demand refers to that the small change in the price results in large change in the…
Q: Price elasticity of supply (PES): Range of values Determinants Time Availability of producer…
A: When talking about price elasticity of demand, there are various factors that affect the…
Q: A baseball team plays in a stadium that holds 70000 spectators. With the ticket price at $12 the…
A: When ticket price is $12, the number of attendance of audiences are 30,000. When ticket price is…
Q: When incomes in a given country rose by 14%, demand for a certain type of pasta fell by 8%.…
A: Given information: Income in a given country rose by 14% => % change in income = 14 and Demand…
Q: Elasticity of price
A: Some goods' pricing are extremely inelastic, according to economists. That is, lowering the price…
Q: $.80-$.70 as a result the quantity demanded of cakes decreased from 120 to 100 what would be he…
A: Elasticity is an economic concept used to measure the change in the aggregate quantity demanded of a…
Q: Analyse the problems carefully. Answer the problems and present your solutions. Interpret the…
A: Equilibrium is attained in the market at the point where the demand and supply intersects each…
Q: is any physical good, service, or idea that satisfies a want or need, plus anything that in the eyes…
A: A sale is an action of giving a good of service in exchange for money. A test refers to evaluation…
Q: The proportion of income spent on the good simply means that the more of your income that you spend…
A: The proportion of income spent on the goods and services determines the demand of a good. When a…
Q: 5. The cross elasticity of demand for a substitute is ____________. Select one: a.equal to zero…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The impact on demand, supply, prices and quantity. In the market for airline tickects, airline…
A: c) When airlines reduce the ticket price by cutting fares, the supply must increase by 3% which…
Q: The price elasticity of demand increases with the length of the period considered because…
A: Elasticity of demand measures the responsiveness of quantity demanded of a good or a service to a…
Q: Demand is inelastic if A) a large change in quantity demanded results in a small change in price.…
A: When computing price elasticity of demand, one need understand the it's range as it can move from…
Q: Average visits per week equal 640 when the copayment is $40 and 360 when the copayment rises to $60.…
A: Given When copayment is $40, then the average visits per week is equal to 640 When copayment is…
Q: Elasticity of Demand
A: The % change in quantity to % change in price calculated by ed. The methods by which ed can be…
Q: When price of a good is 13 per unit, the consumer buys 11 units of that good. When price rises to 15…
A: The price elasticity of demand measures the change in consumption of a product or service in…
Q: A surplus exists in a market if the actual price is Select one: a. non of the answer are correct b.…
A: Answer: b. Above equilibrium price If a surplus existed in the market, it means the actual price is…
Q: The company recently changed the selling price of one of its products from ₱70.00 to ₱67.00. The…
A: Price elasticity of demand = [(Q2 - Q1) / {(Q2 + Q1) / 2}] / [(P2 - P1) / {(P2 + P1) / 2}]
Q: Question 7
A: Price elasticity of demand can be calculated as follows:
Q: Demand is said to be _____________ when the quantity demanded is not very responsive to changes in…
A: Elasticity of demand measures the responsiveness of the demand due to the change in the price of the…
Q: or cocktails
A: ‘Market’ indicates a place where goods & services are bought & sold at equilibrium price(P)…
Q: A 110 90 "D2 180 200 360 Quantity
A: Old Price: 110 New Price: 90 Old Quantity: 360 New Quantity: 200
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- For a good with the following demand: Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (c) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer? (d) If sellers' production costs rise, will they be able to pass these higher costs onto the buyers in the form of higher prices? Explain.The following is a demand schedule for shoes: Price (Per Pair) $120 $100 $80 $60 $4 Quantity Demanded 8 15 25 28 30 (in pairs per year) (a) As the price drops from $120 to $100 a pair, is demand elastic or inelastic? (b) A shoes salesman should raise or cut price to increase the total revenue if the current price is at $70?For a good with the following demand: Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (b) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer?
- a) Everything else held constant, what will happen to the equilibrium price and quantity of peanut butter if the price of peanuts went up and health officials announced that eating peanut butter was good for your health? Provide brief explanation. b) Everything else held constant, there is a 12 percent increase in the price of peanut butter jar. As a result, quantity demanded drops by 20 percent. Calculate the price elasticity of demand for a jar of peanut butter. ( c) For part (b), explain briefly whether the revenue will increase or decrease?Q5. Demand is said to be elastic if (a) the price of the good responds substantially to changes in demand. (b) demand shifts substantially when income or the expected future price of the good changes. (c) buyers do not respond much to changes in the price of the good. (d) buyers respond substantially to changes in the price of the good. (X) No attempt AnsuorSuppose John, the owner-manager of a local hotel, projects the following demand for his rooms: Price ($) Quantity Purchased (per Night) Total Revenue 90 100 110 90 130 70 (a)Calculate the price elasticity of demand between $90 and $110. (Use the midpoint formula) (b)Is the price elasticity of demand between $90 and $110 elastic, unit elastic, or inelastic? (c)Will John’s total revenue rise if he increases the price from $90 to $110?…
- If the own price elasticity of demand for a good is 4.0. then a 10 per cent increase in price results in a : (a) 0.4 percent decrease in the quantity demand (b) 2.5 percent decrease in the quantity demand (c) 4.0 percent decrease in the quantity demand (d) 40 percent decrease in the quantity demandQuestion 5: (a) Define the Income elasticity of demand? Click or tap here to enter text. (b) What is a normal and an inferior good? Click or tap here to enter text. (c) Define the own-price elasticity of demand. Click or tap here to enter text. (d) Define the cross-price elasticity of demand. Click or tap here to enter text.(A) Define the price elasticity of demand (B) Calculate the price elasticity of demand given that price rise by 10% and demand falls by 4% Please be quick
- Refer to the demand schedule below: Price ($) 80 70 60 50 40 30 20 10 0 Quantity demanded 0 50 100 150 200 250 300 350 400 Price increases from $60 to $70. Demand is (Click to select) V 9 and total revenue (Click to select)Quantity Demanded Price 6000 $20 14,000 $15 (a) Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good considered elastic or inelastic? (b) Do you think it is more likely that the average consumer will consider this good a necessity or a luxury? How did you determine your answer?The schedule below shows the quantities of nails demanded at each price: Price Quantity Old 400 10000 New 380 12000 a)Calculate the elasticities of demand, using the point method and interpret your result and List any four (4) factors that could result in the nails having the elasticity calculated