Question

If the price of good X decreases by 2.1% and the price elasticity of demand is...

If the price of good X decreases by 2.1% and the price elasticity of demand is 0.4, 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?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

See images for answers

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1) The income elasticity of demand for Good Z is –0.2, while the cross-price elasticity of...
1) The income elasticity of demand for Good Z is –0.2, while the cross-price elasticity of demand between Good Z and Good Y is 1.63. Which of the following statements is correct regarding Good Z? Group of answer choices Good Z is a inferior good, and Goods Z and Y are complements. Good Z is an inferior good, and Goods Z and Y are substitutes. Good Z is a normal good, and Goods Z and Y are complements. Good Z...
QUESTION 36 The price elasticity of demand for Alpha personal computer is estimated to be -2.0....
QUESTION 36 The price elasticity of demand for Alpha personal computer is estimated to be -2.0. If the price of the computers decreases by 5%, what would be the expected percentage changes in the quantity demanded and in the total revenue for the company? a) Quantity demanded would decrease by 10% and total revenue would decreases by 5%. b) Quantity demanded would increase by 10% and total revenue would increases by 5%. c) Quantity demanded would decrease by 10% and...
1-As we move up the demand curve, the price elasticity of demand * A) increases B)...
1-As we move up the demand curve, the price elasticity of demand * A) increases B) decreases C) becomes unitary D) does not change 2-If the price of lemonade increases relative to the price of grape juice, the demand for: * A) grape juice will decrease. B) grape juice will increase. C) lemonade will decrease. D) lemonade will increase. 3-An increase in price will result in no change in total revenue if: * A) the percentage change in price is...
If the price of good C decreases by 2% and the quantity demanded of good D...
If the price of good C decreases by 2% and the quantity demanded of good D decreases by 8%, what is the cross price elasticity of demand.  Are the two goods substitutes or complements?  Why? If the price of good A decreases by 1.3% and the price elasticity of demand is 1.5, 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? Part B...
1. What is the numerical value for the price elasticity of demand if a price change...
1. What is the numerical value for the price elasticity of demand if a price change causes no change in quantity demanded?________ What is the numerical value for elasticity of demand if a price change causes no change in total revenue?________ What is the elasticity of demand for a horizontal demand curve?________ What is the elasticity of demand if a price increase leads to an increase in total revenue? elastic / inelastic. What is the numerical value for the elasticity...
The cross-price elasticity of demand measures the absolute change in the quantity demanded of one good...
The cross-price elasticity of demand measures the absolute change in the quantity demanded of one good divided by the absolute change in the price of another good. percentage change in the price of one good divided by the percentage change in the quantity demanded of another good. percentage change in the quantity demanded of one good in one location divided by the price of the same good in another location. percentage change in the quantity demanded of one good divided...
Assume the price elasticity of demand for a good is –1.23. The demand for this good...
Assume the price elasticity of demand for a good is –1.23. The demand for this good is _______ which means the percentage change in quantity demanded (in absolute value) is _______ the percentage change in price (in absolute value). Group of answer choices elastic, larger than elastic, smaller than inelastic, smaller than inelastic, larger than
Suppose that goods A and B are close substitutes. If the price of good A decreases,...
Suppose that goods A and B are close substitutes. If the price of good A decreases, then we would expect an: a) increase in the demand for A and a decrease in the quantity of B demanded. b )increase in the demand for A and an increase in the quantity of B demanded. c) increase in the demand for good A as well as for good B. d) increase in the quantity of A demanded and a decrease in the...
If the percentage change in price is 10 percent and the demand is elastic, how would...
If the percentage change in price is 10 percent and the demand is elastic, how would the quantity demanded percentage change? If a decrease in price increases total revenue, what can you determine about the elasticity of demand for the good?
Cross-price elasticity of demand is calculated as the total percentage change in quantity demanded divided by...
Cross-price elasticity of demand is calculated as the total percentage change in quantity demanded divided by the total percentage change in price. percentage change in the price of good 1 divided by the percentage change in the price of good 2. percentage change in quantity demanded divided by the percentage change in income. percentage change in quantity demanded of good 1 divided by the percentage change in the price of good 2.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT