For which of the following would the price elasticity of demand be greater?
a Salt b Beer c Gasoline d Coca-Cola
"D"
The price elasticity of Coca Cola will be greater as the Coca cola will have several substitutes in the market.
For which of the following would the price elasticity of demand be greater? a Salt b...
Question 5 Which of the following statements about the price elasticity of demand is correct? The absolute value of the elasticity of demand ranges from zero to one. The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. Demand is more elastic the smaller the percentage of the consumer's budget the item takes up. Demand is more elastic in the long run than it is in the short run. Question 6 The cross-price elasticity...
Suppose the absolute value of the price elasticity of demand for basketball game tickets on yur campus is greater than 1. Increasing ticket prices will increase the total revenue from ticket sales. True False A perfectly elastic demand curve is horizontal. curvilinear. upward sloping. vertical. In recent years, the prices of new domestically produced cars have been falling. Suppose consumers respond by reducing their demand for used cars and mass transport services such as bus travel. This information suggests that...
22. The price elasticity of demand measures the responsiveness of the change in the: A) quantity demanded to a change in the price. B) price to a change in the quantity demanded. C) lope re enterprise D) slope of the demand curve to a change in the quantity demanded. 23. The price of gasoline rises 5% and the quantity of gasoline purchased falls 1%. price elasticity of demand is equal to _______ and demand is described as _______ A) 0.2; inelastic B) 5; inelastic C) 0.2; elastic 24. For a...
Coca-Cola Co has determined that the price elasticity of demand for a case of Diet Coke for California residents is ECA = –2.0, while the price elasticity of demand for West Virginia residents is EWV = –3.5. Assume that the marginal cost is constant at MC = $5 and that Coca-Cola can successfully segment the market and prevent arbitrage. To maximize profit, Coca-Cola should set the price for a case of Diet Coke in California at PCA = $ _______ and in West...
Suppose that own-price elasticity of demand for Coca-Cola is -1.5. In order for The Coca-Cola Company to increase its total revenue, and therefore profitability, what must it do to the current price of Coca-Cola?
23. Rank the price elasticity of demand from most ed from most elastic to least elastic for the following three Orowing three items: Alcoholiehavares all beer, and Molson Canadian be A Molson canadian beer all beer alcoholic beverages b. All beer, alcoholic beverages Molson Canadian beer C. Alcoholic beverages all beer Molson Canadian beer d. All beer. Molson Canadian beer alcoholic beverages 24. Which of the following could explain why the deman inelastic? wing could explain why the demand for...
1. Which of the following statements is true? a. If the price elasticity of demand for exports plus the price elasticity of demand for imports is greater than 1, a depreciation in a currency will improve the current account on the balance of payments b. If the price elasticity of demand for exports plus the price elasticity of demand for imports is equal to 1, a depreciation in a currency will improve the current account on the balance of payments...
Question 8 The cross-price elasticity of demand between Coca-Cola and Pepsi-Cola is calculated by dividing the percentage change in quantity demanded of Coca-Cola by the percentage change in the quantity demanded of Pepsi-Cola. the percentage change in the price of Coca-Cola by the percentage change in the price of Pepsi-Cola. the percentage change in the price of Pepsi-Cola by the percentage change in quantity demanded of Coca Cola the percentage change in the quantity demanded of Coca-Cola by the percentage...
Price elasticity of demand for a product is likely to be greater the smaller the proportion of one`s incomes is spent on the good the greater the amount of time passes the fewer the number of substitutes if the product is a necessity rather than a luxury The demands for such products as salt and electricity tend to be: perfectly price elastic. relatively price inelastic. relatively price elastic. of unit price elasticity.
Would you expect the cross price elasticity to be positive or negative for the following set of goods? (a) Hot dogs and hot dog buns. (b) Gasoline and electric cars. (c) Coffee and tea (d) Beer and pretzels