The following scenarios describe the price elasticity of supply and demand for a particular good.
The following scenarios describe the price elasticity of supply and demand for a particular good.
Elastic demand, inelastic supply
Elastic demand, elastic supply
Inelastic demand, elastic supply
Inelastic demand, inelastic supply
In which scenario will a subsidy increase consumption the most? (Click to select)
Elastic demand, inelastic supply
Elastic demand, elastic supply
Inelastic demand, elastic supply
Inelastic demand, inelastic supply
Homework Answers
Ans:-
The following graphs are given below:
Draw demand and supply
curve in four panels according to four cases
Inelastic curve are stepper
Elastic curve are flatter
Shift Dd curve in all four panel by the same distance.
As per the four panel maximum shift is 2nd panel.
Fe, Elastic Dd < Elastic supply
Add Answer to:
The following scenarios describe the price elasticity of supply and demand for a particular good.
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
1)---For the following scenarios, first solve for price elasticity of demand, then determine if the good...
1)---For the following scenarios, first solve for price elasticity of demand, then determine if the good is elastic or inelastic. a) If the price of sweaters increases by 10 % , the quantity demand decreases by 13.5 %. b) The original price of yoga pants was $25.00, and 1,000 pairs were sold. The price then increased to $30.00, and the number of pairs sold decreased to 800. Use the midpoint formu la to solve. 2)-Disney World recently instituted strategic prices,...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result in changes...
Suppose the price elasticity of supply for a good is 2.0. This means... The supply of this good is elastic. Inputs...
Suppose the price elasticity of supply for a good is 2.0. This means... The supply of this good is elastic. Inputs used to produce this good are probably rare and/or expensive. The supply of this good is inelastic. Inputs used to produce this good are probably rare and/or expensive. The supply of this good is elastic, Inputs used to produce this good are probably cheap and/or plentiful. The supply of this good is inelastic. Inputs used to produce this good...
4. Assume the income elasticity of demand for a particular good is -1.5, which of the...
4. Assume the income elasticity of demand for a particular good is -1.5, which of the following is correct? A. This is a normal good. B. This is an inferior good. C. A 10% fall in income would imply a15% increase in purchases. D. Both B and D are correct. 5. The law of demand states that, holding everything else constant, an increase in the price of a good will a. cause a surplus. b. cause a shortage. c. decrease...
If the price elasticity of supply is 5, supply is said to beThe choices for the...
If the price elasticity of supply is 5, supply is said to
beThe choices for the first one
is: Perfectly elastic, elastic, unit elastic, inelastic, perfectly
inelastic. Same with the last choices.
If the price elasticity of supply is 5, supply is said to be perfectly elastic This means that a 1% increase in the price of the product will lead to a % change in the quantity supplied. Supply is Cresponsiveto price changes. If a 1% change in price...
5. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of...
5. Determinants of the price elasticity of demand
Consider some determinants of the price elasticity of
demand:
• The availability of close substitutes
• Whether the good is a necessity or a luxury
• How broadly you define the market
• The time horizon being considered
A good with many close substitutes is likely to have relatively
__(Elastic, Inelastic)___ demand since consumers can easily choose
to purchase one of the close substitutes if the price of the good
rises.
A...
1)---For the following scenarios, first solve for price elasticity of demand, then determine if the good is elastic or inelastic. a) If the price of sweaters increases by 10 % , the quantity demand decreases by 13.5 %. b) The original price of yoga pants was $25.00, and 1,000 pairs were sold. The price then increased to $30.00, and the number of pairs sold decreased to 800. Use the midpoint formu la to solve. 2)-Disney World recently instituted strategic prices,...
5. The cross-price elasticity of demand between good A and good B is -1.4. These goods are: A. Complements B. Substitutes C. Unrelated Goods D. Inelastic Goods 6. Income elasticity of demand for streaming video is 0.5, which indicates that streaming video is a: A. Normal good B. Inferior good C. Not good D. Can't say for sure 7. When the price of sriracha increases by 15%, you observe quantity supplied increase by 25%. Elasticity of supply is: A. 0.6...
Suppose the price elasticity of supply for a good is 2.0. This means... The supply of this good is elastic. Inputs used to produce this good are probably rare and/or expensive. The supply of this good is inelastic. Inputs used to produce this good are probably rare and/or expensive. The supply of this good is elastic, Inputs used to produce this good are probably cheap and/or plentiful. The supply of this good is inelastic. Inputs used to produce this good...
If the price elasticity of supply is 5, supply is said to
beThe choices for the first one
is: Perfectly elastic, elastic, unit elastic, inelastic, perfectly
inelastic. Same with the last choices.
If the price elasticity of supply is 5, supply is said to be perfectly elastic This means that a 1% increase in the price of the product will lead to a % change in the quantity supplied. Supply is Cresponsiveto price changes. If a 1% change in price...
5. Determinants of the price elasticity of demand
Consider some determinants of the price elasticity of
demand:
• The availability of close substitutes
• Whether the good is a necessity or a luxury
• How broadly you define the market
• The time horizon being considered
A good with many close substitutes is likely to have relatively
__(Elastic, Inelastic)___ demand since consumers can easily choose
to purchase one of the close substitutes if the price of the good
rises.
A...
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