Answer
price elasticity of demand =%change in quantity /%change in price
%change in price =%change in quantity/price elasticity of demand
=-30/(-0.6)
=50%
the price must have increased by 50%
Option 4
If the own-price elasticity of demand for a good is -0.6 and quantity demanded decreases by...
5. If the price of good C decreases by 2% and the quantity demanded of good D decreases by 8%, what is the cross price elasticity of demand. Are the two goods substitutes or complements? Why?
A.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread falls by 10%, the quantity demanded will increase by: B.) Suppose that a 10% increase income causes a 20% increase in demand for good X. The coefficient of the income elasticity of demand is: C.) The price of a weekly magazine decreases from $1.90 to $1.50. The quantity demanded increases from 100,000 to 200,000 copies. The price elasticity of demand in this range is:...
Exercise 4.1: Price Elasticity of Demand The price of a good is $200, and the quantity demanded is 2,000. The price elasticity of demand is-1.25. If the price changes to $204, what is the new quantity demanded? Exercise 4.2: Income Elasticity of Demand A consumer's income is $40,000, and the quantity demanded of a good is 2,000. The income elasticity of demand is +0.60. If the consumer's income changes to $41,000, what is the new quantity demanded? Exercise 4.3: Income...
Suppose that when the price for Good A increases by 7 percent, the quantity demanded for that product decreases by 6 percent. Accordingly, calculate the own price elasticity of demand for Good A. Is demand for Good A elastic, inelastic, or unit elastic?
When the price of a good increased by 8 percent, the quantity demanded of it decreased 4 percent The price elasticity of demand is . A price rise will total revenue O A. 0.50; decrease O B. 2.00; increase O c. 2.00; decrease OD. 0.50, increase O E. 1.00; decrease An example of a good with such a demand is O A. bread OB. blue jeans O c. theater tickets Click to select your answer
A normal good has a income elasticity of demand and quantity demanded as income rises. O A. negative; increases OB. positive; decreases O C. positive; increases OD. negative; decreases
Seе Hin Suppose the absolute value of the price elasticity of demand is 10.00. If the quantity demanded of smartphones decreases by 2.00%, there must have been an increase in the price of smartphones of %. Round to the nearest integer.
19. Price elasticity of demand is defined as the a. Percentage change in quantity demanded induced by a 1 percent change in price. (Or, the percentage change in quantity demanded divided by the percentage change in price) b. Maximum amount consumers will pay for increased quantity. c. Percentage amount by which price can change without affecting the quantity demanded. Percentage increase in price induced by a decrease in demand. d. Percentage increase in price induced by a decrease in demand....
9. Suppose you calculate the price elasticity of demand for a certain good and you report that the elasticity 18 V.O. The fact that the elasticity is a positive number means that a. when the price of the good increases, the quantity demanded increases in response. b. demand for the good is elastic. c. you have dropped the minus sign and reported the absolute value of the elasticity d. the good has close substitutes and/or the good is a luxury....
5. The price of a good rises by 12 percent and the price elasticity of demand for the good is -0.85. Which of the following is a correct interpretation of these facts? A. When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent. B. For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent. C. For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent. D....