which is more price elastic : a pen or your mortgage
Homework Answers
A mortgage is the money that you borrow to buy a house or flat. Demand for mortgage is usually price inelastic. When one borrows some money and the loan interest rate drops, then he might want to increase the borrowing amount, but only slightly because it consumes a huge part of their income. And when mortgage rate increases, then the amount of money a person borrowed to buy house remains unchanged.
On the other hand, though pen is a necessity good, it has a substitute - pencil. So, when price of pen increases, quantity demanded might drop by a larger percentage than the price change as more people will switch to pencil.
So, pen is more price elastic.
Which of the following causes demand to be more elastic with respect to price? A. Shorter...
Which of the following causes demand to be more elastic with respect to price? A. Shorter periods of time to adjust to a change in price B. A steeper demand curve for a given price and quantity C. Fewer substitutes D. A high ratio of price to income
As time increases A good becomes more price elastic A good becomes less price elastic Time...
As time increases A good becomes more price elastic A good becomes less price elastic Time has no effect on price elasticity of demand only on income elasticity Time has no effect on price elasticity of demand only on income cross-price elasticity If the elasticity of demand is more elastic than the elasticity of supply then consumers bear the greater economic incidence of the tax producers bear the greater economic incidence of the tax consumers and producers evenly share the...
Demand is likely to be more price-elastic: (Check all that apply.) When the price of the...
Demand is likely to be more price-elastic: (Check all that apply.) When the price of the good is a larger portion of your income In the short run than in the long run When fewer substitutes are available When there are more competing firms selling similar goods
15.Demand tends to be more elastic when A. price is high, and more inelastic when price...
15.Demand tends to be more elastic when A. price is high, and more inelastic when price is low. B. price is low, and more inelastic when price is high. C. the demand curve is very steep. D. the quantity demanded is larger. 16.If increasing the admission charge for National Parks increases the National Park Service’s total revenue, then the demand for National Park visits is A.inelastic. B.elastic, but not perfectly elastic. C.perfectly elastic. D.a perfectly horizontal line. 20. When consumers’...
Sort the following determinants of price elasticity of demand. Which ones make goods and services more elastic and which ones make goods and services
Sort the following determinants of price elasticity of demand.
Which ones make goods and services more elastic and which ones make
goods and servicesMore inelastic
More inelastic the demand the lower is going to be the relative price, while more elastic...
More inelastic the demand the lower is going to be the relative price, while more elastic the demand, higher is going to be the relative price charged by a discriminating monopolist. Explain using diagrams.
In a duopoly, each firm faces: a more elastic demand curve if it lowers its price...
In a duopoly, each firm faces: a more elastic demand curve if it lowers its price a. b. a perfectly elastic demand curve a perfectly inelastic demand curved C. a more elastic demand curve if it raises its price d.
A) Is the demand for Dell computers to be more or less price-elastic than the demand...
A) Is the demand for Dell computers to be more or less price-elastic than the demand for all Computers? Explain B) Compare the demand curve of Dell computers and the demand curve for all computers, which one is steeper?
Is the price elasticity of labor supply more or less elastic in higher paying jobs?
Is the price elasticity of labor supply more or less elastic in higher paying jobs?
9.The more time people have to adjust to a price change, A.the less elastic their demand...
9.The more time people have to adjust to a price change, A.the less elastic their demand will be. B. will not affect the elasticity of their response, unless the good in question is a luxury good. C.the more elastic their demand will be. D.will not affect the elasticity of their response, unless the good in question is a necessity. 10.When a good has many close substitutes available, its demand is likely to be A.less price elastic than for goods without...
In a duopoly, each firm faces: a more elastic demand curve if it lowers its price a. b. a perfectly elastic demand curve a perfectly inelastic demand curved C. a more elastic demand curve if it raises its price d.
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