Question

Assume that, for a particular demand curve, when price rises from $120 to $150, total revenue falls from $6,000 to $4,500.

a. Based on this information, what is the quantity demanded at each price.

b. Without calculating the coefficient of elasticity, is demand over this range elastic or inelastic? How do you know

Answer #1

When the price is $2, quantity demanded is 10. When the price
rises to $8, quantity demanded falls to 2.
What is the value of the elasticity of demand? Is it elastic or
inelastic?

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

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...

If the price of tomatoes rises from 7 SAR per kg to 9 SAR per
kg, the quantity demanded decreases from 1000 boxes to 600 boxes.
Calculate the price elasticity of demand over this price range. Is
the demand for tomatoes elastic or inelastic?
(Solve step by step)

5. Identify how total revenue changes if Demand is inelastic and
price falls; a. Total revenue falls b. Total revenue rises c. Total
revenue remains constant d. None of the above
6. Identify how total revenue changes if Demand is elastic and
price falls; a. Total revenue falls b. Total revenue rises c. Total
revenue remains constant d. None of the above. '
7. In the following pair of goods, which has the higher price
elasticity of demand: (a) Airline...

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...

A life-saving medicine without any close substitutes will tend
to have a small elasticity of demand. a large elasticity of demand.
a small elasticity of supply. a large elasticity of supply. The
price of a good rises from $8 to $12, and the quantity demanded
falls from 110 to 90 units. Calculated with the midpoint method,
the price elasticity of demand is 1/5. 1/2. 2. 5. A linear,
downward-sloping demand curve is inelastic unit elastic. elastic.
inelastic at some points,...

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...

Fill in the blanks:
When demand is inelastic, a decrease in price causes
quantity demanded to ________and total revenue to ________.
If price rises and total revenue rises, demand must be
________.
When demand is elastic, an increase in price causes quantity
demanded to ________and total revenue to ________.
If price rises and total revenue stays the same, demand must be
________ elastic.

The table below shows monthly individual consumer demand
schedule for gasoline. Without calculating the price elasticity of
demand coefficients find out on which portion of the curve demand
is elastic and on which portion it is inelastic. Prove the answers
with corresponding calculations in the blank table column below (5
points).
Points
Price/gallon ($)
Qd (gallons)
Corresponding Calculations
A
6
20
B
5
38
C
4
54
D
3
72
E
2
95
F
1
120
Portion AB (underline the...

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