Question

a Yahoo K 5 DF Discussion Forum 1. What is meant by "price elasticity" of demand? Suppose the price elasticity of demand for Newspapers is estimated to be 3. What does this mean in term of responsiveness of demand? Discuss 2. You are on the manager of Bronx Zoo with the responsibility to decrease annual admission fares. You would recommend a decrease in the monthly fares only if you thought the demand curve for the Bronx Zoo visits wak: a. Inelastic b. Elastic c. Unitary elastic d. Perfectly elastic Discuss. Don't simply give your answer, Use grading rubrics: a. Define the term b. Offer an example C. Next, explain. Have you answered the questions d. Try to relate the concept to previous work/assignmentés) issues....docx MacBook Air

Answer 1

Answer :-

Price elasticity of demand :- it is a measure to show the demand for quantity due to change in price.

Price elasticity of demand = % change in demand ÷ % change in price = 3/1.

We can say that for every 1% change in price causes 3% change in demand of a product/service. More change in damand for small change in price, newspapers said to be having more elasticity.

(2) price elasiticity means a pleasure to show effect on demand change due to changes in price.

Price elasticity (e_p) = % change in quantity demanded / ÷ % change in price.

Inelasticity means when Ep < 1.

Elasticity means when Ep > 1.

Incase of unitary ealastic Ep =1

Perfect elasticity --> Ep =0.

In general , decrease in price will raise the demand.

In cases of elasticity and perfect elasticity,

Decrease in price result in more increase in demand.

However , perfect elasticity is possible in theoretically but not possible in real scenario.

# I recommend decrease in fares when the elasticity of demand relatively elastic or perfect elastic. B & D.

*Grading rubrics*

Rubrics are scales in which criteria used for grading or assessment is clearly spelled out along a continuum.

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