Question

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——?

Answer #1

Initial price of cruise = $19,500

Increased price of cruise = $20,500

% change in price = (Increased price - initial price)/initial price = (20500-19500) / 19500 = 5.13%

Initial demand = 2,100 travelers

Reduced demand = 1,900 travelers

% change in demand = (Reduced demand - initial demand)/initial demand= (1900-2100)/2100 = -9.52%

So, now price elasticity of demand = %change in quantity demanded / % change in price = -9.52%/5.13% = -1.86

**So, Price elasticity of demand number =
1.86**

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
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Good X is given as 0.1. This means that
a.
as income increases by 10 percent, quantity demanded rises by 1
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b.
as income...

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b) Interpret the number you calculated in part (a) for the
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When the price increases by 30 percent and the quantity demanded
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elastic.
perfectly inelastic.
inelastic.
perfectly inelastic.
9.
If the cross-price elasticity of demand between Good A and Good
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-3 percent
1.50 percent
10 percent
3 percent
-1.25 percent

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Price
Quantity Demanded when income =$10,000
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$5
50
60
$7
40
55
$9
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20
45
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Step 1
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