Question

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?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans: If the percentage change in price is 10 percent and the demand is elastic, the quantity demanded percentage would be more than 10 percent. Elastic demand means a small change in price leads more change in quantity demanded. so the percentage change in quantity demanded is more than the percentage in its price.

Ans: If a decrease in price increases total revenue, we can say that the elasticity of demand for the good is elastic. A decrease in price leads more quantity demanded in case of elastic demand. As a result the total revenue will increase .

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
CLASS: Elastic or Inelastic? A price change causes the quantity demanded of a good to drop...
CLASS: Elastic or Inelastic? A price change causes the quantity demanded of a good to drop by 20 percent, yet total revenue still increases by 10 percent. Is demand elastic or inelastic? How can you tell?
A price change causes the quantity demanded for a good to increase by 20 percent and...
A price change causes the quantity demanded for a good to increase by 20 percent and the total revenue of that good decreases by 15 percent. What can you say about the price elasticity of demand at this point. It's elastic It's inelastic It's unitary elastic It's perfectly elastic
8. When the price increases by 30 percent and the quantity demanded drops by 30 percent,...
8. When the price increases by 30 percent and the quantity demanded drops by 30 percent, the price elasticity of demand is unitary elastic. elastic. perfectly inelastic. inelastic. perfectly inelastic. 9. If the cross-price elasticity of demand between Good A and Good B is 2 and the percentage change in price of Good A is 5 percent, what is the percentage change in quantity demanded of Good B? -3 percent 1.50 percent 10 percent 3 percent -1.25 percent
A measure of the rate of percentage change of quantity demanded with respect to price, holding...
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...
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...
5a)The price of car batteries increases by 10 percent and the quantity demanded decreases by 10...
5a)The price of car batteries increases by 10 percent and the quantity demanded decreases by 10 percent. What is the price elasticity of car batteries? Unit elastic, and revenue will not change Elastic, and revenue will increase Elastic, and revenue will decrease Inelastic, and revenue will increase b)Good A and Good B have negative income elasticities, but Good A is more negative than Good B. If the economy’s income increases, which of the following is true? Good A’s demand will...
True/False Answer Following Questions.......16-. The demand for oil would become less elastic if the price of...
True/False Answer Following Questions.......16-. The demand for oil would become less elastic if the price of oil increases by significant amount for a long period of time. 17-. When demand is inelastic, total revenue goes down in proportion to a price increase. 18- Elasticity of demand is always negative. 19-. If the price of a good increases from $100 to $110 and quantity demanded decreases from 100 units to 90 units, the demand would be classified as unit elastic. 20-...
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...
When the demand is elastic, the percentage change in quantity is (greater/smaller) than the percentage change...
When the demand is elastic, the percentage change in quantity is (greater/smaller) than the percentage change in price, so when the price falls, the total revenue (increases/decreases).
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