Elasticity of demand = % change in quantity demanded / %change in price
=10/-40
=0.25
the elasticity of demand for pianos is 0.25
QUESTION 4 Suppose a 10% decrease in the price of pianos causes a 40% increase in...
If a 10% increase in the price of gas causes a 40% decrease in the demand for standard sized autos, then the cross-price elasticity of demand is:
Suppose a 1% increase in price will lead to a 4% decrease in unit sales. What is the absolute value of the price elasticity of demand (|ED|)?
5. If a 7 percent increase in the price of avocadoes causes a 4 percent decrease in the demand for lemons, the cross-elasticity between lemons and avocadoes equals _ and these two goods are substitutes / complements (circle one).
Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of gasoline and a 30% drop in the sales of SUVs. What can you say about elasticities? 2. b) A 10% increase in the price of pizza causes a 10% drop in the quantity of both pizza and beer sold. Describe elasticities and the nature of the two products.
Piano Lessons Price $50,- 50 10 20 30 40 Quantity (hours of instruction) Which event would shift the demand curve for piano lessons from Dto D2, as shown in the diagram? a decrease in the price of pianos an increase in the price of piano lessons a decrease in the price of piano lessons O an increase in the price of pianos Question 2 A decrease in expected future supply of a good will lead to: a change in the...
Suppose that a 20% increase in the price of gasoline causes a 5% decrease in the consumption of gasoline and a 30% drop in the sales of SUVs. What can you say about elasticities?
QUESTION 8 Figure: Piano Lessons Piano Lessons Price 50 Quantity (hours of instruction) 10 20 30 40 Which event would shift the demand curve for piano lessons from D 1 to D2, as shown in the diagram? A an increase in the price of pianos B.an increase in the price of piano lessons C.a decrease in the price of pianos D. a decrease in the price of piano lessons QUESTION Weather forecasters predict that a major winter storm will strike...
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If a 10% increase in the price of X causes the quantity demanded of Y to decrease by 15%, then ... The cross-price elasticity of demand between these goods is -1.5, which indicates that these goods are substitutes. The cross-price elasticity of demand between these goods is -1.5, which indicates that these goods are complements. The cross-price elasticity of demand between these goods is -0.67, which indicates that these goods are substitutes. The cross-price elasticity of demand between these goods...
Suppose that a 10 increase in price results in a 50 percent decrease in quantity demanded. What does (the absolute value of) own price elasticity of demand equal? a) 0.5. b) 0.2. c) 5. d) 10.