Question

**Categories of Price Elasticity of Demand**

For each of the following values for price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. Also, indicate (increase, decrease, no effect) what would happen to total revenue if a firm raised the price in each elasticity range.

Price Elasticity of Demand equals | Descriptionn of Elasticity | Total Revenue Change |

-2.5 | ||

-1.0 | ||

-0.8 | ||

-infinity | ||

0 |

Answer #1

1.
The Price Elasticity of Demand for a good is −0.78. Which of the
following describes the Price Elasticity of Demand?
Group of answer choices
Elastic
Inelastic
Unit elastic
Perfectly elastic
2.
The Price Elasticity of Demand for a good is −1.11. Which of the
following describes the Price Elasticity of Demand?
Group of answer choices
Elastic
Inelastic
Unit elastic
Perfectly elastic

Drawing on the influences (determinants) of price elasticity of
demand, explaining whether the demand for petrol in Australia is
elastic or inelastic. Illustrate the effect of price drop on the
total revenue of a petrol station.
Part 1: explain whether demand for petrol is elastic or
inelastic by exploring the determinants of price elasticity of
demand.
Part 2: explain and illustrate the impact of price rise on total
revenue of a petrol station. You may draw a graph.

Drawing on the influences (determinants) of price elasticity of
demand, explaining whether the demand for petrol in Australia is
elastic or inelastic. draw a graph of the effect of price drop on
the total revenue of a petrol station.
Part 1: explain whether demand for petrol is elastic or
inelastic by exploring the determinants of price elasticity of
demand.
Part 2: explain and illustrate the impact of price rise on total
revenue of a petrol station. draw a graph.

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

1) Firms are interested in the magnitude of the price elasticity
of demand coefficient. The magnitude of ?? determines whether the
demand for a good or service is elastic, inelastic or unit elastic.
For the following cases indicate whether demand is elastic,
inelastic or unit elastic. 1 < |??| < ∞ |??| = 1 0 < |??|
< 1 2)
2, What happens to the absolute value of the price elasticity of
demand as you move up a demand curve?

From the following quotations, what, if anything, can you
conclude about elasticity of demand?
a. "Good weather resulted in record wheat harvests and sent
wheat prices tumbling. The result has been disastrous for many
wheat farmers."
A.
The demand has unit elasticity.
B.
The demand is inelastic.
C.
The demand is elastic.
D.
This quotation tells nothing about the elasticity of demand.
b. "Ridership always went up when bus fares came down, but the
increased patronage never was enough to...

What is price elasticity of demand?
What determines whether a product’s demand is elastic, inelastic,
unitary elastic, perfectly elastic and perfectly inelastic? What is
mid-point formula to determine the elasticity of demand and why is
it important to use it instead of the general formula for
elasticity? Carefully explain.

FOR EACH OF THE FOLLOWING CASES, CALCUALTE THE POINT PRICE
ELASTICITY OF DEMAND, AND STATE WHETHER DEMAND IS ELASTIC,
INELASTIC, OR UNIT ELASTIC. THE DEMAND CURVE IS GIVEN BY
QD=5,000-40PX
A. THE PRICE OF THE PRODUCT IS $40
B. THE PRICE OF THE PRODUCT IS $ 80.
C. THE PRICE OF THE PRODUCT IS $20.

1a)
The price elasticity of orange juice in Alaska is 4.0, whereas
in Florida it is 1.5. Demand in Alaska is _______, whereas demand
in Florida is _________
elastic; inelastic
inelastic; elastic
elastic; elastic
inelastic; inelastic
b)
If a product has a price elasticity of demand of 0.8, then what
is the product’s demand?
Elastic
Inelastic
Unit elastic
It cannot be determined.
c)The income elasticity of demand for pork is -0.2. If income
increases by 10 percent, what will happen...

If the Price Elasticity of Demand is -1/2, we can say that:
Demand is inElastic
Demand is Elastic
Demand is perfectly Elastic
Demand is perfectly inElastic

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