Question

Assume the price elasticity of demand for a good is –1.23. The demand for this good is _______ which means the percentage change in quantity demanded (in absolute value) is _______ the percentage change in price (in absolute value).

Group of answer choices

elastic, larger than

elastic, smaller than

inelastic, smaller than

inelastic, larger than

Answer #1

From the given return the question the value of price elasticity of demand is -1.23

Here negative sign shows the **inverse**
**relationship** between price and quantity
demanded

The value shows that the demand is **elastic** in
nature

An elastic demand is that type of demand in which even there is small change in the price can causes heavy change in the quantity demanded

If the demand is inelastic in nature then the value of price elasticity of demand is less than 1 in absolute value

**So the correct answer here is option A**

1.
The Price Elasticity of Demand for a good is −0.78. Which of the
following describes the Price Elasticity of Demand?
Group of answer choices
Elastic
Inelastic
Unit elastic
Perfectly elastic
2.
The Price Elasticity of Demand for a good is −1.11. Which of the
following describes the Price Elasticity of Demand?
Group of answer choices
Elastic
Inelastic
Unit elastic
Perfectly elastic

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...

The cross-price elasticity of demand measures the
absolute change in the quantity demanded of one good divided by
the absolute change in the price of another good.
percentage change in the price of one good divided by the
percentage change in the quantity demanded of another good.
percentage change in the quantity demanded of one good in one
location divided by the price of the same good in another
location.
percentage change in the quantity demanded of one good divided...

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...

1-As we move up the demand curve, the price elasticity of demand
* A) increases B) decreases C) becomes unitary D) does not
change
2-If the price of lemonade increases relative to the price of
grape juice, the demand for: * A) grape juice will decrease. B)
grape juice will increase. C) lemonade will decrease. D) lemonade
will increase.
3-An increase in price will result in no change in total revenue
if: * A) the percentage change in price is...

Taking the absolute value of the cross-price elasticity of
demand is incorrect because it would:
remove the ability to tell whether the two products have
inelastic demand or elastic demand.
cause the value of the cross-price elasticity of demand to
become smaller.
remove the ability to tell whether the two products are
substitutes or complements.
cause the value of the cross-price elasticity of demand to
become zero.
The percent change in insulin demanded for any price change is
zero. The...

true or false?
10) Assume the demand and supply functions for good X can be
written as
Qd = 1000 - 40Px
Qs = -200 + 20Px
In this example, equilibrium price is $20 and the equilibrium
quantity is 200.
Answer:
11) The price elasticity of demand is measured as the
percentage change in price divided by the percentage change in
quantity demanded.
Answer:
12) When the percentage change in price is greater than the
corresponding change in quantity demanded,...

Assume economists have determined that the price elasticity of
demand for housing in a given range of the demand curve is -1.75.
Suppose that the price of housing increases by 10 percent.
Given the value of price elasticity of demand, is
demand for housing elastic or inelastic in the given range of the
demand curve?
What happens to quantity demanded of housing (what is the
percentage change in the quantity demanded of housing) as
price of housing increases by 10%?...

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

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...

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