Discuss what inelastic means in terms of a good or product. Then discuss what perfectly inelastic...
Homework Answers
Inelastic demand means responsiveness of quantity demanded is less compared to price. In simple words, % change in price is greater than % change in Q
Perfectly inelastic demand means % change in quantity=0 which means price may increase or decrease but quantity demand will remain same
Market for necessity goods can be highly inelastic but can't be perfectly elastic, it means price can be changed but it cannot be increased to infinity
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Discuss what inelastic means in terms of a good or product. Then
discuss what perfectly inelastic...
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price...
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price elasticity coefficients correspond to the following: a. elastic demand b. inelastic demand c. unit elasticity 4. What does it mean to say that a product is perfectly inelastic? Provide examples. 5. Explain the relationship between total revenue and elasticity. What will happen to total revenue when price is increased for a product with elastic demand? Inelastic demand? Unit elastic...
Suppose that the demand for a drug is perfectly inelastic and the market is initially in...
Suppose that the demand for a drug is perfectly inelastic and the market is initially in equilibrium. Suppose further that there is an increase in the price of an input required to produce of the drug. Everything else held constant, graphically (and in words) illustrate the impact of this action in the market for this drug. What will happen to equilibrium price and equilibrium quantity? How would your answer be different if demand was not perfectly inelastic? (7 points) 4.
4. Suppose that the demand for a drug is perfectly inelastic and the market is initially...
4. Suppose that the demand for a drug is perfectly inelastic and the market is initially in equilibrium. Suppose further that there is an increase in the price of an input required to produce of the drug. Everything else held constant, graphically (and in words) illustrate the impact of this action in the market for this drug. What will happen to equilibrium price and equilibrium quantity? How would your answer be different if demand was not perfectly inelastic? (7 points)
Think of a good that you believe is highly inelastic and poll at least ten people...
Think of a good that you believe is highly inelastic and poll at least ten people about how their consumption would change if the price changed [change: choose any good - do you think demand is elastic or inelastic? Then do poll]. You should ask each person a) how much they currently buy of the good at current prices, b) how much price would have to change before they would reduce their consumption (if they say they would always buy...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will...
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
1. What is meant by the price elasticity of demand? How is it calculated? What does...
1. What is meant by the price elasticity of demand? How is it calculated? What does this particular calculation tell us? 2. Explain the difference between elastic and inelastic. Provide a real-life example of a good or service and describe whether or not demand for this particular good is elastic or inelastic. 3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these two terms. Provide examples. 4. Describe the difference between a price effect...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of...
For each of the following demand curves: i) Find the price-elasticity of demand in terms of P. ii) Determine the range of P values for which the demand curve is perfectly elastic, elastic, unitary elastic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0 < P < 10, unitary elastic at P = 10, etc). iii) Calculate the price-elasticity of demand at P = 3 and give an interpretation in words of what that...
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price elasticity coefficients correspond to the following: a. elastic demand b. inelastic demand c. unit elasticity 4. What does it mean to say that a product is perfectly inelastic? Provide examples. 5. Explain the relationship between total revenue and elasticity. What will happen to total revenue when price is increased for a product with elastic demand? Inelastic demand? Unit elastic...
Suppose that the demand for a drug is perfectly inelastic and the market is initially in equilibrium. Suppose further that there is an increase in the price of an input required to produce of the drug. Everything else held constant, graphically (and in words) illustrate the impact of this action in the market for this drug. What will happen to equilibrium price and equilibrium quantity? How would your answer be different if demand was not perfectly inelastic? (7 points) 4.
4. Suppose that the demand for a drug is perfectly inelastic and the market is initially in equilibrium. Suppose further that there is an increase in the price of an input required to produce of the drug. Everything else held constant, graphically (and in words) illustrate the impact of this action in the market for this drug. What will happen to equilibrium price and equilibrium quantity? How would your answer be different if demand was not perfectly inelastic? (7 points)
Think of a good that you believe is highly inelastic and poll at least ten people about how their consumption would change if the price changed [change: choose any good - do you think demand is elastic or inelastic? Then do poll]. You should ask each person a) how much they currently buy of the good at current prices, b) how much price would have to change before they would reduce their consumption (if they say they would always buy...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
3. For each of the following demand curves i) Find the price-elasticity of demand in terms of P ii) Determine the range of P values for which the de- mand curve is perfectly elastic, elastic, unitary elas tic, inelastic and perfectly inelastic (your answer will look like, the demand is inelastic for 0< P < 10, unitary elastic at P 10, etc) iii) Calculate the price-elasticity of demand at P-3 and give an interpretation in words of what that means...
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