assisst on attached A cut in price from R75 to R60 results in an increase in demand from 1200 units to 1500units. What would the price elasticity of of demand be for this good?10.а) 0,8b) 1c) 1,25d) 2If disposable income rises by 2% when the income elasticity of demand is 1,5. Whatchange in demand would we expect to see?11.a) 3%b) 1,33%c) 0,75%d) -3%12.What do you expect the price elasticity of demand for a exclusive yacht be?a) Relatively price elasticc) Relatively price inelasticb) Unit elasticd) Zero

Answered: 10. A cut in price from R75 to R60…

10. A cut in price from R75 to R60 results in an increase in demand from 1200 units to 1500 units. What would the price elasticity of of demand be for this good? a) 0,8 b) 1 c) 1,25 d) 2

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Question

assisst on attached

A cut in price from R75 to R60 results in an increase in demand from 1200 units to 1500
units. What would the price elasticity of of demand be for this good?
10.
а) 0,8
b) 1
c) 1,25
d) 2
If disposable income rises by 2% when the income elasticity of demand is 1,5. What
change in demand would we expect to see?
11.
a) 3%
b) 1,33%
c) 0,75%
d) -3%
12.
What do you expect the price elasticity of demand for a exclusive yacht be?
a) Relatively price elastic
c) Relatively price inelastic
b) Unit elastic
d) Zero

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