Question

When the price of doodads falls from $16 to $10 the quantity of doodads demanded rises from 150 to 160 units.

a) Compute and categorize the elasticity of demand of doodads.

b) Interpret the number you calculated in part (a) for the elasticity of demand for doodads.

c) If the government placed an excise tax on doodads, who would pay the majority of that tax: consumers or firms? Explain verbally (no graph required).

Answer #1

When the price is $2, quantity demanded is 10. When the price
rises to $8, quantity demanded falls to 2.
What is the value of the elasticity of demand? Is it elastic or
inelastic?

Suppose that when the price of water rises by 30 percent, the
quantity demanded falls by 10 percent. The price elasticity of
demand for water is ____________, making water an _______________
good (in this example).

If, as the price of good Y rises from $5.00 to $5.75, the
quantity demanded of good Y falls from 54 units to 48 units, price
elasticity of demand for good Y in this price range is
Question 7 options:
a)
0.84.
b)
0.37.
c)
1.05.
d)
4.77.
e)
1.19.

Suppose that when the price of good A rises from $18 to $20, the
quantity demanded of good B falls from 30 units to 20 units.
Using the midpoint method, the cross-price elasticity of demand
is
Select one: a. -0.26, where goods A and B are complements.
b. -0.26, where goods A and B are substitutes.
c. -3.8, where goods A and B are complements.
d. -3.8, where goods A and B are substitutes.

When the price of a cruise rises from $19,500 to $20,500, the
quantity demanded decreases from 2,100 to 1,900 travelers.
Use this information to calculate the price elasticity of
demand.
The percentage change in the price of a cruise is——？
The percentage change in the quantity of cruises demanded is
——？percent.
>>> Report your answer as a positive number.
The price elasticity of demand for cruises is——?

A measure of the rate of percentage change of quantity demanded
with respect to price, holding all other determinants of demand
constant is
a.
Income elasticity of demand
b.
Own price elasticity of demand
c.
Price elasticity of market equilibrium
d.
Cross price elasticity of demand
The value of the income elasticity of demand coefficient for
Good X is given as 0.1. This means that
a.
as income increases by 10 percent, quantity demanded rises by 1
percent.
b.
as income...

2.) For a certain good, when the good’s price falls from $22 to
$20, its quantity demanded rises from 2,000 to 2,200 units. Given
this information, find the price elasticity of demand two different
ways. First, use the elasticity of demand formula. Second, use the
total revenue test. You must use both methods. show all work for
credit.

Assume that, for a particular demand curve, when price
rises from $120 to $150, total revenue falls from $6,000 to
$4,500.
a. Based on this information, what is the quantity
demanded at each price.
b. Without calculating the coefficient of elasticity,
is demand over this range elastic or inelastic? How do you know

1.If price rises by 20% and quantity demanded of rice falls by
100 pounds, the elasticity of demand is : (1 point)
a. greater than 1
b. equal to -5
c. equal to -20
d. cannot be determined without additional information.
2.If quantity supplied responds only slightly to a change in
price, then: (1 point)
a. Supply is elastic
b. An increase in price will shift the supply curve to a large
extent
c. Supply is inelastic
d. Supply is...

The price of a new portable CD player falls from $100 to $90.
The quantity of CD players demanded rises from 15,000 per year to
20,000 per year. Use the midpoint formula to calculate the price
elasticity of demand for portable CD players. Is the demand
elastic, inelastic, or unit elastic?

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