Question

The price elasticity of demand for face mask is -0.8. what must occur to the price...

The price elasticity of demand for face mask is -0.8. what must occur to the price of face masks in order for the quantity demanded to rise by 20%?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Price elasticity = -0.8

Quantity demanded or face masks rise by 20%.

It otherwise means that the price of face masks must have been decreased.

Elasticity = % change in QD/% change in Price

-0.8 = 20%/% change in Price

% change in Price = -25%

This otherwise means the price decreased by 25%

Elasticity = % change in QD/% change in Price

Elasticity = 20%/-25% = -0.8

Price elasticity is always comes in negative because of inverse relationship between price and quantity demanded.

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.) Economists for McDonalds estimate that the price elasticity of demand for their french fries is...
1.) Economists for McDonalds estimate that the price elasticity of demand for their french fries is 0.8. So, if McDonalds raises the price of its french fries by 20 percent, the quantity demanded will decrease by ____ percent. 20 8 6 2.) Elasticity is likely to be highest for goods that: have many substitutes and are not necessary for basic living have few substitutes and are not necessary for basic living have few substitutes and are necessities 3.) If the...
1. The price of hand sanitizer, a complement for face masks, increases. What happens in the...
1. The price of hand sanitizer, a complement for face masks, increases. What happens in the market for face masks? a. Demand increases b. Demand decreases c. Supply increases d.Supply decreases 2. In the market for textbooks, the price elasticity of demand is −0.64. If the price of textbooks increases by 15%, what is the percent change in the quantity demanded? Group of answer choices a. 14.36% b. −9.6% c. −23.44% d. Not enough information to determine
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...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in the following scenarios. a. Consider the market for coffee. Suppose the price rises from $4 to $6 and quantity demanded falls from 120 to 80. What is price elasticity of demand? Is coffee elastic or inelastic? b. John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buys each week falls from 2 pounds to 1 pound. What is his income...
In each case below, what is the value of the price elasticity of demand? Is demand...
In each case below, what is the value of the price elasticity of demand? Is demand perfectly inelastic, inelastic, unit elastic, elastic or perfectly elastic? Price falls by 10%, quantity demanded rises by 8% Price rises by 3%, quantity demanded falls by 3% Price rises by 1%, quantity demanded falls by 5% Price rises by 5%, quantity demanded collapses to zero Price falls by 2%, quantity demanded does not change
A company has calculated their point price elasticity of demand to be -0.8 when they sell...
A company has calculated their point price elasticity of demand to be -0.8 when they sell 6,000 units a month at a price of $120 per unit. What is the expected percentage change in the monthly quantity of units sold if the company raises the price by 30%? How many monthly units do they expect to sell after this change in price? Calculate price elasticity of demand at the new price and quantity.
1. If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes...
1. If the price elasticity of demand for cigarettes is 0.55, and the price of cigarettes increases by 10 percent, then the quantity of cigarettes demanded will fall by what percent? 2. If the price elasticity of demand for chicken is 2, then a 20% decrease in the price of chicken will lead to what percentage increase in the quantity demanded of chicken? 3. When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price...
Assume that the price elasticity if demand or Ed=.20. Given a 20% increase in price, there...
Assume that the price elasticity if demand or Ed=.20. Given a 20% increase in price, there with be a _____ decease in quantity demanded.
Elasticity Practice Problem Set We can gain insight by manipulating the price elasticity of demand equation....
Elasticity Practice Problem Set We can gain insight by manipulating the price elasticity of demand equation. With the information provided below, demonstrate what happens in the specific markets. Show all work. a) Suppose there is a technological change that allows manufacturers to make Android smartphones much more cheaply. In fact, the retail price falls by 15%, ceteris paribus. If the price of elasticity of demand is -0.8, how much does the quantity demanded change? b) In an alternative scenario, ceteris...
1-The price elasticity of demand for furniture is estimated at 1.3. This value means a one...
1-The price elasticity of demand for furniture is estimated at 1.3. This value means a one percent increase in the A.price of furniture will decrease the quantity of furniture demanded by 1.3 percent. B.price of furniture will increase the quantity of furniture demanded by 1.3 percent. C.quantity of furniture demanded will decrease the price of furniture by 1.3 percent. D.quantity of furniture demanded will increase the price of furniture by 1.3 percent. 2.An advance in technology lowers the price of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT