The price elasticity of demand for beef is -1.6. If the price of beef increases by...
The price elasticity of demand for beef is -1.6. If the price of beef increases by 50%, what will happen to the quantity demanded?
| a |
It will increase by 80% |
|
| b |
It will increase by 80 units |
|
| c |
It will decrease by 80% |
|
| d |
It will decrease by 80 units |
Homework Answers
| Price elasticity of demand (Ed) = Percentage change in quantity demanded/percentage change in price | ||||||||||
| Ed = -1.6 | ||||||||||
| precentage change in price = 50% | ||||||||||
| precentage change in price = .50 | ||||||||||
| (-1.6) = percentage change in quantity demanded/0.5 | ||||||||||
| percentage change in quantity demanded = -1.6*.5 | ||||||||||
| percentage change in quantity demanded = -.80 | ||||||||||
| percentage change in price is -80%. | ||||||||||
| c) it will decrease by 80%. | ||||||||||
Add Answer to:
The price elasticity of demand for beef is -1.6. If the price of
beef increases by...
A price elasticity of demand for Good X equal to -.85 implies Group a)if price increases...
A price elasticity of demand for Good X equal to -.85 implies Group a)if price increases by $1.00, quantity demanded will decrease by .85. b)if price decreases by $0.85, quantity demanded will increase by 1. c)a price of $1.00 will result in sales increase of .85 units. d)if price increases by 1%, quantity demanded will decrease by .85%. e)if price increases by 1%, demand will decrease by .85%.
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...
2. If the price of good B increases by 2.6% and the price elasticity of demand...
2. If the price of good B increases by 2.6% and the price elasticity of demand is 0.5, find the percentage change in quantity demanded and the percentage change in revenue. If you want to increase revenue should you increase or decrease the price in this case?
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:...
The price elasticity of demand is equal to the percentage change in price divided by the percentage change...
The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...
3. If the estimated price elasticity of demand for foreign travel is 4: A) a 20%...
3. If the estimated price elasticity of demand for foreign travel is 4: A) a 20% decrease in the price of foreign travel will increase quantity demanded by 80%. B) the demand for foreign travel is inelastic. Ca 10% increase in the price of foreign travel will increase quantity demanded by 40%. D) a 20% increase in the price of foreign travel will increase quantity demanded by 80%.
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...
9. Suppose you calculate the price elasticity of demand for a certain good and you report...
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....
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10...
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b....
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b. how responsive sales are to changes in the price of a related good. c. how responsive the quantity demanded is to a change in price. d. how responsive sales are to a change in buyers' incomes. 2. Suppose the value of the price elasticity of demand is -3. This implies that, a. a 1 percent increase in the price of the good causes the...
The price elasticity of demand is equal to the percentage change in price divided by the percentage change in quantity demanded the change in quantity demanded divided by the change in price. the value of the slope of the demand curve. the percentage change in quantity demanded divided by the percentage change in price If 20 units are sold at a price of US$50 and 30 units are sold at a price of US$40, what is the absolute value of...
3. If the estimated price elasticity of demand for foreign travel is 4: A) a 20% decrease in the price of foreign travel will increase quantity demanded by 80%. B) the demand for foreign travel is inelastic. Ca 10% increase in the price of foreign travel will increase quantity demanded by 40%. D) a 20% increase in the price of foreign travel will increase quantity demanded by 80%.
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....
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
1. The price elasticity of demand measures, a. how responsive suppliers are to price changes. b. how responsive sales are to changes in the price of a related good. c. how responsive the quantity demanded is to a change in price. d. how responsive sales are to a change in buyers' incomes. 2. Suppose the value of the price elasticity of demand is -3. This implies that, a. a 1 percent increase in the price of the good causes the...
Most questions answered within 3 hours.
-
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 2 minutes ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 3 minutes ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 3 minutes ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 5 minutes ago -
2. An AC generator has 80 rectangular loops on
its armature. Each loop is 11 cm...
asked 7 minutes ago -
Please help me with this question. Consider Aldi’s current and
potential geographic markets (see Exhibit 4...
asked 9 minutes ago -
What are the main components of the fermentation process and
give an explanation of each? Include...
asked 34 minutes ago -
Explain which types of cells in the body (belonging to which
organs, etc.) are sensitive to...
asked 38 minutes ago -
A single cable supports an 703-kg elevator car. What is the
tension in the cable when...
asked 40 minutes ago -
among the three different ways to link CSS specifications to an
HTML document (inline CSS, document...
asked 52 minutes ago -
(1) Write the net ionic equation for the reaction that occurs
when equal volumes of 0.191...
asked 1 hour ago -
On the night of April 18, 1775, a signal was to be sent from the
Old...
asked 1 hour ago