Question

Which is more price elastic, a pencil or your rent? Why?

Which is more price elastic, a pencil or your rent? Why?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Price elasticity of demand measures the impact of changes in quantity demanded due to changes in the prices. If a good has substitutes, its price elasticity will be relatively more than a good having no substitute. Pencil will have realtively more price elastic than rent because if the price of pencil rises, it can easily be substitited for pen thus quantity demanded of pencil will fall. Rent has relatively inelastic demand because there are no close substitute of it. So changes in the price of rent will affect quantity demanded proportionately less.

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
Why is the marginal revenue curve downward sloping for monopolist? a.Consumers are more price elastic for...
Why is the marginal revenue curve downward sloping for monopolist? a.Consumers are more price elastic for goods sold by monopolists b.A monopoly faces high barriers to entry c.Consumers will bid down marginal revenue in monopolistic markets d.A monopoly must lower price on all units to sell an additional unit
Why is supply more​ price-elastic in the long​ run? The milk industry provides a good example...
Why is supply more​ price-elastic in the long​ run? The milk industry provides a good example of the difference between the​ short-run and​ long-run price elasticity of supply. The price elasticity of supply over a​ one-year period is about​ 0.10: If the price of milk increases by 20 percent and stays there for a​ year, the quantity of milk supplied will rise by only 2 percent. In the short​ run, dairy farmers can squeeze just a little more output from...
A. What happens if the cost of one material component of a pencil increases? (Check all...
A. What happens if the cost of one material component of a pencil increases? (Check all that apply) The price of pencils increase It may make another source of a material component of a pencil more desirable. Companies will attempt to exploit workers to reduce costs. Technology will drive down the price of other material components. B. Why is the making of a simple pencil such a complex task? (Check all that apply) making pencils is easy, almost anyone can...
1. Price Elastic or Inelastic Good a.What is an example of a product (or group of...
1. Price Elastic or Inelastic Good a.What is an example of a product (or group of products) which you buy or sell whose demand is price inelastic (or, if you prefer, price elastic). In your answer, be sure to state carefully what it means for demand to be "price inelastic" (or price elastic). b. What is it about this product or these products that makes either you or buyers in general TEND to continue to purchase it (if you’re thinking...
What Shape does the bid-rent function exhibit if the demand for housing is price-elastic and t...
What Shape does the bid-rent function exhibit if the demand for housing is price-elastic and t = constant (part 1) a) linear b) convex c) concave d) undetermined What Shape does the bid-rent function exhibit if office firms want to be in contact with each other and t = increasing (part 2) a) linear b) convex c) concave d) undetermined What Shape does the bid-rent function exhibit if manufacturing firms do not engage in factor substitution and t = increasing...
microeconomics question. So I understand that with more substitutes the good becomes more elastic, people can...
microeconomics question. So I understand that with more substitutes the good becomes more elastic, people can get the good somewhere else cheaper, and it is not a necessity. However when the price of a good skyrockets and the demand drops way down, wouldn't that make it more elastic or inelastic and why? im so confused
17. Given the following information will this good be price elastic or price inelastic? Income elastic...
17. Given the following information will this good be price elastic or price inelastic? Income elastic or income inelastic? Explain why but no need to calculate the elasticities involved Quantity demanded Price is $20 25 Price is $40 20 Income is $40,000 15 Income is $80,000 20
Which of the following statements explains why there is an elastic layer found in arteries, but...
Which of the following statements explains why there is an elastic layer found in arteries, but not veins? Valves present in veins provide a mechanism for withstanding high blood pressure flow going through veins. The total length of arteries in the body is more than the total length of veins, and the elastic layer helps push the blood over the longer length. Arteries are thicker than veins, and the elastic layer is necessary to support the additional weight of arteries....
after the equilibrium quantity and price increased, is demand less or more elastic compared to before...
after the equilibrium quantity and price increased, is demand less or more elastic compared to before the increase?
Sharpening your pencil is an operation that may be divided into eight small elemental motions. In...
Sharpening your pencil is an operation that may be divided into eight small elemental motions. In MTM? terms, each element may be assigned a certain number of? TMUs: Reach 4 inches for the pencil 4 TMU Grasp the pencil 2 TMU Move the pencil 6 inches 10 TMU Position the pencil 24 TMU Insert the pencil into the sharpener 3 TMU Sharpen the pencil 140 TMU Disengage the pencil 8 TMU Move the pencil 6 inches 12 TMU a) The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT