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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

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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
Transcribed Image Text: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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