Question

If the quantity demanded decreases by %15 and the price goes from 1.25 to 1.75 what is the elasticity of demand? Is it elastic or inelastic?

If the price goes down by 20% and the quantity sold increases from 80 to 120 units what is the elasticity of demand? Is it elastic or inelastic?

Answer #1

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If the price of a good A goes from $5 to $4 and the quantity
demanded goes from 60 to 70, the price elasticity of demand is?
a. elastic (greater than 1)
b. inelastic (less than 1)
c. unitary elastic (equal to 1)
d. none of the above

When the price of good "X" increases 20 percent (+20%), Harry
decreases his quantity demanded of "X" by 25 percent while Meghan
decreases her quantity demanded of "X" by 15 percent. Harry's
demand for good "X" is (relatively inelastic / unitary elastic /
relatively elastic) and Meghan's demand for good "X" is (relatively
inelastic / unitary elastic / relatively elastic).
A. Relatively inelastic; relatively
inelastic.
B. Relatively inelastic; relatively
elastic.
C. Unitary elastic; relatively
elastic.
D. Relatively elastic; relatively
elastic.

16. At a price of $4, quantity demanded is 100; and at a price
of $6, quantity demanded is 120. Using the midpoint formula, the
price elasticity of demand is ________ and demand is ________.
A) 0.1; inelastic
B) 0.45; inelastic
C) -2.2; elastic
D) -10; elastic

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 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

The price of suntan lotion increases from $6 to $8 per bottle
and quantity demanded decreases from 900,000 bottles to 845,000
bottles. Use the midpoint method to calculate the price elasticity
of demand for suntan lotion.
Is demand elasticity or inelastic? How do you know?
What factors might be responsible for you answer in (b)
above?

1. If the price decreases by 4 percent. As a result, the
quantity demanded increases by 12 percent. The price elasticity of
demand is………...
2. What is the relationship between elasticity and revenue?
3. A 7 percent reduction in the price of a product has zero
effect on the dollar amount of consumer expenditure on the product.
The price elasticity of demand is………
4. What does the price elasticity of demand coefficient
measures?
5. What is characteristic of the demand...

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-...

A-TRUE/FALSE-....1-. The quantity demanded is the quantity that
consumers are willing and able to purchase at a given price. 2- A
vertical reading of the demand curve gives the maximum price per
unit that consumers are willing to pay for a particular quantity of
a good. 3- There are more substitutes for oil as a jet fuel than
for oil as a lubricant. 4-. An increase in income increases the
demand for normal goods. 5-. Producer surplus can be defined...

Suppose the price of apples increases from $20 to $28, and in
response quantity demanded decreases from 100 to 84. Using the
mid-point formula, what is the price elasticity of demand? (Note:
your answer should be correct to two decimal places; and be sure to
express your answer as a positive number.)

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