Question

The price elasticity of demand for apples is -3.4. If the price of apples rises by...

The price elasticity of demand for apples is -3.4. If the price of apples rises by 5%, the quantity demanded of apple is expected to change by [Answer]%.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Price elasticity measures the responsiveness of quantity to a change in the price, other things remains constant.

As the price and quantity is inversely related, the price elasticity is always negative. It is calculated by the following formula

Price Elasticity = change in quantity in / change in price in percentage

In the question, elasticity is given as -3.4

Price of apples rises by 5%

How much the quantity demanded changes?
When price rises, the quantity demanded falls.

-3.4 = % change in quantity / % change in price

-3.4 = % change in quantity / 5%

% change in quantity = -3.4 * 5 = -17%

In otherword, the quantity demanded falls by 17%.

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
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...
1.If price rises by 20% and quantity demanded of rice falls by 100 pounds, the elasticity...
1.If price rises by 20% and quantity demanded of rice falls by 100 pounds, the elasticity of demand is : (1 point) a. greater than 1 b. equal to -5 c. equal to -20 d. cannot be determined without additional information. 2.If quantity supplied responds only slightly to a change in price, then: (1 point) a. Supply is elastic b. An increase in price will shift the supply curve to a large extent c. Supply is inelastic d. Supply is...
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
1)The price elasticity of demand for candles is __________ because as the price of candles rises...
1)The price elasticity of demand for candles is __________ because as the price of candles rises by 21%, the quantity demanded of candles falls by 14%. Group of answer choices a)inelastic b)none of the other three answers c)unitary elastic d)elastic 2) If the % change in the quantity demanded of bicycles is greater than the % change in the price of bicycles, then bicycles are __________ . Group of answer choices a)Inelastic b)Unitary elastic c)Elastic d)Infinitely elastic 4)All of the...
When the cross-price elasticity EPX = -3: a. demand rises by 3% with a 1% increase...
When the cross-price elasticity EPX = -3: a. demand rises by 3% with a 1% increase in the price of X b. the quanitty demanded decreases by 3% with a 1% increase in the price of X c. the quantity demanded rises by 1% with a 3% increase in the price of X d. demand decreases by 3% with a 1% increase in the price of X
What does it mean if I tell you that the price elasticity of demand of apples...
What does it mean if I tell you that the price elasticity of demand of apples is 3.2, while the price elasticity of demand of apple juice is 1.5? In your answer, be sure to explain what elasticity is and whether you consider these products to be elastic or inelastic. Finally, suggest reasons why these elasticities might make sense. Are there complements? Substitutes? Explain.
When the price of a cruise rises from $19,500 to $20,500​, the quantity demanded decreases from...
When the price of a cruise rises from $19,500 to $20,500​, the quantity demanded decreases from 2,100 to 1,900 travelers. Use this information to calculate the price elasticity of demand. The percentage change in the price of a cruise is——？ The percentage change in the quantity of cruises demanded is ——？percent. ​>>> Report your answer as a positive number. The price elasticity of demand for cruises is——?
Consider the market demand curve for apples, which relates the quantity demanded of apples (in thousands...
Consider the market demand curve for apples, which relates the quantity demanded of apples (in thousands of bushels) to various prices of apples. Suppose that the price elasticity of demand for apples is -2. If the price of apples increases by 3 percent, then by how much will the quantity demanded of apples decrease? Select one: a. by 2 percent b. by 6 percent c. by 6 thousand bushels d. by 2 thousand bushels
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...
9.   You read that the own-price elasticity for college tuition is -2.5. If price rises by...
9.   You read that the own-price elasticity for college tuition is -2.5. If price rises by 5%, what is the predicted change in quantity demanded (assuming all other factors equal)? a. fall of 5% b. fall of 12.5% c. increase of 5% d. increase of 12.5%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT