Question

What did you learn about economics from these modules?(modules is about Elasticity,Inelastic, Elastic, and Unitary Demand, Calculate price elasticity using the midpoint method)

Answer #1

If we talk in simple terms then **elastic demand**
is that type of demand in which even there is small change in the
price can cause heavy change in the quantity demanded

in this the consumers are price sensitive

if we talk about **inelastic demand** then in this
even there high change in the price can cause is very low change in
the quantity demanded

in this the consumers are not very much price sensitive

in unit elastic demand the proportion change of price and quantity demanded an equal

2

**By mid point method-**

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.

a. Calculate price elasticity given the following information.
Is the curve elastic, inelastic or unitary elastic? Original
Quantity:9800 lbs of coffee New Quantity: 6500 lbs of coffee
Original Price: $10.99/lb New Price: $9.99/lb b. (6 pts) Given the
elasticity calculated in part a, will the seller increase or
decrease their revenue if they increase the price of coffee? c. (8
pts) Explain the determinants of elasticity.

1) Using the midpoint method, the price elasticity of demand is
determined to be about 0.85. If there is a 10% decrease in the
quantity demanded of the product then what effect would this have
on the price of the product?
A decrease in the price of the product from $8.50 to $10
A 11.8% increase in the price of the product
An increase in the price of the product from $8.50 to $10
2)The ________ is negative for complementary...

What is your elasticity of demand for going to this school? Is
it elastic, inelastic, or unit elastic? Explain your
reason. If tuition rose 10%, what would you do?
What is your elasticity of demand for gasoline? is it elastic,
inelastic, or unit elastic? explain your reason. If gas prices rose
10%, what would you do?
What is your elasticity of demand for movies?, is it elastic,
inelastic or unit elastic? Explain your reason. if movie ticket
prices rose 10%,...

Is price elasticity of demand at GCU elastic or inelastic? What
could you do to find out?

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...

Are cigarettes relatively demand elastic or demand inelastic?
Explain using the determinants of price elasticity of demand. Does
the burden of cigarette taxes fall more heavily on buyers or
sellers? Explain. Do you think that higher cigarette taxes will
deter more people from smoking?

Label demand as elastic, unit elastic, or inelastic for each
scenario. Use the midpoint method when applicable to calculate the
price elasticity of demand.
Contain Yourself!, a plastic container company, raises the price
of its signature Lunchbox container from $3.00$3.00 to $4.00$4.00.
As a result, the quantity sold drops from 20,000 to 15,000.
Economists working for the United States have determined that
the elasticity of demand for gasoline is 0.50.5.
Capital Metro decides to increase bus fare rates from $2.00$2.00...

Is the price elasticity of demand for a rare luxury car elastic,
or inelastic?

Talk about price elasticity of demand, and how it is different
from income elasticity. Propose and calculate a numerical example
for each. Also describe price elasticity of supply and use its
formula to numerically calculate an example. In each case, make
sure to identify whether the outcome is elastic/inelastic/unit
elastic, and what the sign of the outcome implies. SHORT ANSWER
PLEASE!

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