If a good, such as salt, is inelastic then an increase in price will cause demand...
If a good, such as salt, is inelastic then
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an increase in price will cause demand to fall by a greater percentage |
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An increase in price will cause demand to fall by less than the percentage change in price |
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An increase in price will cause other firms to market the good. |
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An increase in price will cause demand to increase |
Homework Answers
In the case of inelastic demand, the increase in price will increase total revenue as demand falls by less than the percentage change in price
option(B)
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If a good, such as salt, is inelastic then
an increase in price will cause demand...
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively el...
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively elastic. Imposing a tax on salt will cause total decrease in traded quantity than imposing the same percentage tax on orange juice. a. a greater b. a lesser c. neither a greater nor a lower d. either a greater or a lesser than a 28.) We can expect a tax on gasoline to cause the quantity of gasoline traded to change...
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. Suppose the price elasticity of demand for farm products is inelastic and the federal government...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government wants to follow a policy of increasing income for farmers. To accomplish this goal, the government will promote the programs that.........(increase or decrease) the price of farm products, knowing that the percentage change in price will be......…...(exactly the same as, Greater than, or smaller than) the percentage........(increase or Decrease) in quantity. 2. Suppose the price elasticity of demand for used cars is estimated to...
If the demand for a product is price inelastic: an increase in price will increase total...
If the demand for a product is price inelastic: an increase in price will increase total revenue. the price elasticity coefficient will be greater than one. an increase in price will decrease total revenue. a decrease in price will result in a decrease in demand.
An increase in the price of a substitute good would cause:
QUESTIN 5 An increase in the price of a substitute good would cause: An increase in the demand of our good and the price would increase An increase in the supply of our good and the price would increase A decrease in the demand of our good and the price will increase A decrease in the supply of our good and the price will fall QUESTIN 6 If there is a freeze in Florida that destroys half of the orange crop there, what effect would that have...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
QUESTION 36 If the demand for a good is price inelastic and the good price is...
QUESTION 36 If the demand for a good is price inelastic and the good price is increased, then the marginal revenue (MR) received by the seller will not change. decrease. increase. Can't be determined from this information. QUESTION 37 If the income elasticity of a particular good is negative 0.2, it would be considered a superior good. Oa normal good. O an inferior good. an elastic good.
Price Controls and Taxes: Price A P Supply 2 в Е н G Demand Quantity 0 23) In the figure shown above, if pri...
Price Controls and Taxes: Price A P Supply 2 в Е н G Demand Quantity 0 23) In the figure shown above, if prices go from P1 to P3, what could this be due to? There is a tax imposed on suppliers per unit sold. Demand for the good increases due to an increase in people's incom5. There is a sales tax imposed on consumers. d. a. b. с. a binding price floor is imposed Both c and d are...
Which of the following is NOT associated with inelastic demand? Select one O a. percentage change...
Which of the following is NOT associated with inelastic demand? Select one O a. percentage change in quantity is greater than percentage change in price O b. percentage change in quantity is less than percentage change in price O c. necessities O d. price elasticity of demand is less than one
27). Assume that the demand for salt is relatively inelastic and that the demand for orange juice is relatively elastic. Imposing a tax on salt will cause total decrease in traded quantity than imposing the same percentage tax on orange juice. a. a greater b. a lesser c. neither a greater nor a lower d. either a greater or a lesser than a 28.) We can expect a tax on gasoline to cause the quantity of gasoline traded to change...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
QUESTION 36 If the demand for a good is price inelastic and the good price is increased, then the marginal revenue (MR) received by the seller will not change. decrease. increase. Can't be determined from this information. QUESTION 37 If the income elasticity of a particular good is negative 0.2, it would be considered a superior good. Oa normal good. O an inferior good. an elastic good.
Price Controls and Taxes: Price A P Supply 2 в Е н G Demand Quantity 0 23) In the figure shown above, if prices go from P1 to P3, what could this be due to? There is a tax imposed on suppliers per unit sold. Demand for the good increases due to an increase in people's incom5. There is a sales tax imposed on consumers. d. a. b. с. a binding price floor is imposed Both c and d are...
Which of the following is NOT associated with inelastic demand? Select one O a. percentage change in quantity is greater than percentage change in price O b. percentage change in quantity is less than percentage change in price O c. necessities O d. price elasticity of demand is less than one
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