Question

What would the price elasticity of demand for a product be if the seller raises the...

What would the price elasticity of demand for a product be if the seller raises the price by 20% and demand falls by 5%? Would this indicate price elasticity or inelasticity and why?

0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
What would the price elasticity of demand for a product be if the seller raises the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • please help with these 10 questions. Thank you 2. If the price elasticity of demand is...

    please help with these 10 questions. Thank you 2. If the price elasticity of demand is 10, then for every 1% Increase in price, there is a: 1% decrease in quantity demanded. O 1% increase in quantity demanded. O 10% increase in quantity demanded. 10 / decrease in quantity demanded. sales of reels because the two goods are 3. If the cross elasticity of demand between fly rods and reels is -0.8, a decrease in the price of rods would...

  • An economist calculates that the cross price elasticity of demand for product A relative to product...

    An economist calculates that the cross price elasticity of demand for product A relative to product B is .5 (plus point 5). Given this information, which of the following statements is correct? When the price of product A rises, the demand for product B falls. Products A and B are substitute products. Products A and B are complementary products . When the price of product A falls, the demand for product B rises.

  • a) CROSS ELASTICITY OF DEMAND: What would happen to the market demand for beer if the...

    a) CROSS ELASTICITY OF DEMAND: What would happen to the market demand for beer if the price of wine increased by 20%? You might want to distinguish between different types of beer. (Your answer should show you understand the concept of cross elasticity of demand.) b) INCOME ELASTICITY OF DEMAND: What would happen to the demand for fur coats if income went up by 20% What would happen to the demand for underwear if income went up by 20%. Again,...

  • 1. A product has a price elasticity (of demand) equal to 1.50. If price increases by...

    1. A product has a price elasticity (of demand) equal to 1.50. If price increases by six percent, what will be the decrease in quantity demanded? 2. A product has an income elasticity of 0.75. If income rises by 8 percent, what will be the increase in demand? 3. In question 2, is the product most likely a luxury or necessity? Why? 4. The cross price elasticity between two products, L and M, is 0.40 (that is, the change in...

  • Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect...

    Price Elasticity of Demand: AWAKE 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 in changes...

  • A product has a price elasticity (of demand) equal to -1.50. If price increases by 8...

    A product has a price elasticity (of demand) equal to -1.50. If price increases by 8 percent, what will be the decrease in quantity demanded? A product has an income elasticity of 0.8. If income rises by 6 percent, what will be the increase in demand? In question 2, is the product most likely a luxury or necessity? Why? The cross price elasticity between two products, L and M, is 0.60 (that is, the change in demand for L with...

  • 4. (a) A product has a price elasticity of demand equal to -2. If price increases...

    4. (a) A product has a price elasticity of demand equal to -2. If price increases by 6 percent, what will be the decrease in quantity demanded? (b) Is this product most likely a luxury or necessity, and why? (c) Another product has an income elasticity of 0.8. If income rises by 8 percent, what will be the increase in demand? (d) Two products have a cross price elasticity of -0.4. Are these product substitutes or complements. (e) Yet another...

  • Find a real world example depicting price elasticity of demand. Be sure to explain how the...

    Find a real world example depicting price elasticity of demand. Be sure to explain how the concept of price elasticity demand would impact the seller's revenues should the seller choose to raise the price of the product.

  • ACTIVITY Using the standard method, calculate the price elasticity of demand (ed) when the price of...

    ACTIVITY Using the standard method, calculate the price elasticity of demand (ed) when the price of wheat rises from $20 to $26 per bushel and the quantity purchased falls from 9,000 to 7,000 bushels. Does your answer suggest to you that the demand is elastic or inelastic?! Using the standard method, calculate the price elasticity of demand (ed) when the price of wheat decreases from $26 to $20 per bushel and the quantity purchased rises from 7,000 to 9,000 bushels....

  • A.) Suppose the price elasticity of demand for bread is 2.00. If the price of bread...

    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:...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT