Question

Think of a good or service with which you are familiar and for which there has...

  1. Think of a good or service with which you are familiar and for which there has been a recent change in quantity demanded because of a change (up or down) in price.

What is the good or service?

What is your best estimate of the original quantity demanded? New quantity demanded? (please explain your units carefully.) You don’t need to do research: these numbers can be a best “guess.”

What is your best estimate of the original price? New price? (please explain your units carefully.)

What is price elasticity of demand for this good or service? Please show your work.

How does this elasticity compare with others listed in the textbook?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The good is crude oil.

best estimate of quantity demanded is  100.1 million barrels per day

new quantity demanded is  1.1.1 million barrels per day.

the original price is 67.31$ and the new price is 63.65$

price elasticity of demand is steeper in nature as demand and price have negative relation but have type of elasticy.

they are :

  • elasticity=0
  • elasticity>1
  • elasticity <1
  • elasticity =1
  • elasticity = infinte

here is the situation of price elasticity >1 but with steeper curve as less subsitute just the subsitute in the suppliers

as change in few price changes demand but with less percentage..

we compare the list in the textbook by the way of change in price to the change in quantity demanded.

price elasticity of demand, e= percentage change in quantity demanded / percentage change in price

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
Think of a good or service with which you are familiar and for which there has...
Think of a good or service with which you are familiar and for which there has been a recent change in quantity demanded because of a change (up or down) in price. What is the good or service? What is your best estimate of the original quantity demanded? New quantity demanded? (please explain your units carefully.) You don’t need to do research: these numbers can be a best “guess.” What is your best estimate of the original price? New price?...
what are some factors that you think cause the good or service for makeup foundation to...
what are some factors that you think cause the good or service for makeup foundation to be unit elastic? please explain in detail and is it related to the determinants of price elasticity of demand? and also, describe the shape of the demabf curve about make up foundation ? please help answers all these questions ? thank you
1) The income elasticity of demand for Good Z is –0.2, while the cross-price elasticity of...
1) The income elasticity of demand for Good Z is –0.2, while the cross-price elasticity of demand between Good Z and Good Y is 1.63. Which of the following statements is correct regarding Good Z? Group of answer choices Good Z is a inferior good, and Goods Z and Y are complements. Good Z is an inferior good, and Goods Z and Y are substitutes. Good Z is a normal good, and Goods Z and Y are complements. Good Z...
28- Public goods create a free-rider problem because only people who pay for the good or...
28- Public goods create a free-rider problem because only people who pay for the good or service can enjoy the good or service. the good or service is rival in nature. the good or service is excludable. people can enjoy the good or service no matter whether or not they pay for it. 29- For which type of good is it necessary to sum the marginal benefit curves vertically in order to obtain the economy's marginal benefit curve? public goods...
If a good is a normal good, its Engel curve should be Question 1 options: decreasing...
If a good is a normal good, its Engel curve should be Question 1 options: decreasing None of the other answers is correct a horizontal line increasing Question 2 (0.5 points) Which of the following claims about inferior goods is correct? Question 2 options: If a good is inferior, it will be so at all income levels (for the same individual) If a good is inferior it must be low quality When income goes up, the quantity demanded of the...
QUESTION 4 (a) If the price of a good increase from $3.50 to $4.25, leading to...
QUESTION 4 (a) If the price of a good increase from $3.50 to $4.25, leading to a fall in quantity demanded from 25 to 15 units, what is the price elasticity of demand for the good at this price range? Interpret the value. (b) Explain why it is important for the business owner to understand the meaning of the             elasticity value.              
Think of a good or service you would stop buying if price went up by 10%....
Think of a good or service you would stop buying if price went up by 10%. Use the demand and supply model to show how the price of that product or service might increase by 10% and include a plausible explanation. Your explanation should include a shift of either demand or supply (or both) of the good/service. It should also include a plausible explanation about what caused the curve(s) to shift. Be sure to explain which direction the curve(s) shifted...
1. Occurs when quantity supplied > quantity demanded at a given price Excess supply (is this...
1. Occurs when quantity supplied > quantity demanded at a given price Excess supply (is this correct) Result in elasticity Result in equilibrium price Excess demand 2. Which of the following statements is true The supply curve shows the relationship between quantity demanded and price of the good or service The Law of Demand helps to explain social behavior In the law of supply, an increase in price results in an increase in quantity supplied. (Is this correct) When consumer...
Week 2 HW: Elasticity Step 1 - E L A S T I C or INELASTIC?...
Week 2 HW: Elasticity Step 1 - E L A S T I C or INELASTIC? Price Elasticity of Demand is a measure of how responsive demand is to a change in price. If a price change leads to a considerably bigger change in quantity demanded, we would consider the good to be responsive to a price change—hence elastic. If, however, a similar price change leads to a much smaller change in demand, we would consider it inelastic. To get...
7) Suppose a $2/unit tax is placed on a good. If the original equilibrium is (P...
7) Suppose a $2/unit tax is placed on a good. If the original equilibrium is (P = $13, Q = 500) and the new equilibrium is (P = $14.50, Q = 300), what is the producer tax burden? Group of answer choices a $1000 b $150 c $450 d $600 8) Which of the following is consistent with a demand curve that shows a larger percent change in price than its percent change in quantity? Group of answer choices a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT