1. The price elasticity of demand for bread A. is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. B. will be higher if there is a new product that is a close substitute for bread. C. will be higher if consumers consider bread to be a necessity. D. All of the above are correct. E. A and B, only

1. The price elasticity of demand for bread A. is computed as the percentage change in quantity demanded of bread divided by the percentage change in price of bread. B. will be higher if there is a new product that is a close substitute for bread. C. will be higher if consumers consider bread to be a necessity. D. All of the above are correct. E. A and B, only

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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32. Studies indicate that the price elasticity of demand for rice is 0.7. If the price of rice fell from $6 to $2. According to the midpoint method, the quantity demanded of rice will rise by (show your calculations and workouts) a. 70% b. 30% C. 60% d. 20%
Question 2 please
1. If a decrease in income results in a decrease in quantity demanded of a good, then for that good the: cross-price elasticity of demand is negative. price elasticity of demand is negative. income elasticity of demand is negative. income elasticity of demand is positive.
1. Using the midpoint method, compute the price elasticity between points X and Y. 2. Use the midpoint method and compute the price elasticity between points X and Y. select from: Demand between X and Y is elastic. Demand between X and Y is inelastic. Demand between X and Y is unit elastic. 3. Using the midpoint method, compute the price elasticity between points Y and Z. 4. Use the midpoint method and compute the price elasticity between points Y and Z.
If the consumers' income increase from $200 to $300, the quantity demanded for product X will increase from 80 to 100 whereas, the quantity demanded for product Y fall from 90 to 63.a.What is income elasticity of demand for product X?b. What kind of product X to these consumers? c. What is income elasticity of demand for product Y ?d.What kind of product Y to these consumers?
A good has a price elasticity of demand of 2.5 this tells us that; A. none of the above B. the price rises by 2.5% when quantity demanded falls by 1% C. Quantity demanded decreases by 2.5% when the price rises by 1% D. the price changes by $ 2.50 when quantity changes by 1 unit
QUESTION 1 A good has an income elasticity of +0.5 . An increase in income from $15,000 to $25,000 will lead to a A. 5 percent decrease in the quantity demanded of the good. B. 25 percent decrease in the quantity demanded of the good. C. 25 percent increase in the quantity demanded of the good. D. 5 percent increase in the quantity demanded of the good. E. 2.5 percent increase in the quantity demanded of the good.
Discuss how the demand elasticity of a product changes? Give examples.
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All normal goods have A. income elasticities of demand greater than 1.0. B. price elasticities of demand greater than 1.0. C. negative price elasticities of demand. D. positive income elasticities of demand.