Answered: 30.The Price Elastictiy of Demand for a…

30.The Price Elastictiy of Demand for a good is - (0.4). If its price increases by 5% by what percentage will its demand fall?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2E: The price elasticity of demand for personal computers is estimated to be 2.2. If the price of...

See similar textbooks

Related questions

Q: If the price of gasoline is $2.00 and the price elasticity of demand 0.4, what is the new price if…

A: The price elasticity of DD (demand) can be defined as when the change in quantity (Q) demanded is…

Q: If a 10% price rise causes a 20% decrease in the amount demanded, the price elasticity of demand is…

A: Introduction Given Information Price elasticity of demand= 5.0 % change in Price = 10 % change…

Q: The cross-price elasticity for hamburger demand with respect to the price of hamburger buns is - 0.6…

A: Cross price elasticity (XED) measures the effect of change in any good's prices on the demand for…

Q: 33. If goods X and Y are COMPLEMENTS, the which of the following could be the value of cross price…

A: Complementary goods: It is good, which is utilized when related to another great or administration.…

Q: If the price elasticity of demand of for gasoline is - 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand has the following formula ed= % change in quantity demanded / % change in…

Q: Which of the following statement/s is/are correct with respect to the own price elasticity of demand…

A: Elasticity of demand=-0.25 Option A : An upward sloping curve depicts a positive relationship. The…

Q: suppose the price is elasticity of demand for a good is -0.6. If it's price rises by 10% then by…

A: # Price elasticity of demand measures the degree of change in quantity demanded due to change in…

Q: Suppose the cross-price elasticity of tea with respect to the price of coffee is 0.6, and the price…

A: Cross elasticity of demand is defined as the measurement of the relative change in quantity demanded…

Q: If the cross-price elasticity of demand between fish and chicken is 2, then a 2% increase in the…

A: The cross elasticity of demand or cross-price elasticity of demand measures the percentage change of…

Q: Your research estimates the (own) price elasticity of demand for coffee as 0.78 in absolute terms.…

A: demand refers to the amount of goods and services needed by the consumers.

Q: Q.3. a. A price change causes the quantity demanded of the good to decrease by 30 percent, while the…

A: There has been more change in quantity demanded.

Q: Your price elasticity of demand for bananas is 4. If the price of bananas rises by 5 %, what is the…

A: Price elasticity of demand measures the responsiveness of percentage change in quantity demanded due…

Q: The price of good X falls by 15 %. As a result, the demand for good Y rises by 30 %. 1. a) What is…

A: Cross-price elasticity of demand measures the responsiveness of change in quantity demanded of one…

Q: A grocery store notices that the cross-price elasticity between chocolate ice cream and chocolate…

A: Complementary goods are those whose decrease in price of one good lead to increase in demand for…

Q: 20.Price Elasticity of Demand of a good is (-)1. At a given price, the consumer buys 60 units of the…

A: As we know that when price decreases demand increases so by using the elasticity formula we can find…

Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand is the measurement of change in quantity demanded with the change in…

Q: Suppose the cross-price elasticity of demand between goods X and Y is 5. How much would the price of…

A: Cross elasticity of demand evaluates the relationship between two products when the price in one of…

Q: 5)Which of the following elasticity coefficients represents a price elastic demand? * a)0.87 b)0…

A: The price of a commodity plays an important role in its demand. If the price increases, then the…

Q: Why does price elasticty of demand is negligible? Explain.

A: Answer: Price elasticity measures the changes in the quantity demanded due to the changes that…

Q: A decrease in the from 150 to R120 results in the demand for the good increasing by 10%. Calculate…

A: Price elasticity of demand measures the responsiveness of demand when price changes. PEd = %chage…

Q: Suppose the income elasticity of demand for food is 0.4. If peoples incomes rise by 12.5%, what…

Q: Suppose the price elasticity of demand for a good is -0.4 how will be the expenditure on good be…

A: When the consumption of a product changes in relation to the change in its price it is termed as…

Q: 1. If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of…

A: Given: Percentage change in Price=10% Percentage change in the quantity Demanded= -40% Formula for…

Q: Suppose the demand curve for a good is: ??=500−12?QD=500−12P. Find the price at which point…

A: The price elasticity of demand, also represented as Ed, quantifies the response of a change in price…

Q: A weekly income of a clerk was increased from N100 to N125 as a result of his promotion in the…

A: The elasticity would be the ratio of the percentage change in the quantity demanded because of the…

Q: If the cross price elasticity of demand between Coke and Pepsi is around 0.6 and Coke drops their…

A: Given Cross price elasticity between Coke and Pepsi is 0.6 Formula for cross price elasticity of…

Q: The elasticity of demand of a good is -1 What does that mean

A: Elasticity of demand for a good is a measure which tells us about the change in quantity demanded…

Q: Q4. (a) Suppose a decrease in price from $100 to $5 causes an increase in Q" from 1005 to 120.…

A: Answer a. According to the question, it is given that : Old Price = $10 New Price = $5 Old Quantity…

Q: 13 If a 10% decrease in the price of gas causes a 30% increase in the demand for standard sized…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: The own-price elasticity of demand for beer in the United States and Germany is -0.55 and -0.15,…

A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…

Q: Jeremy's (own) price elasticity of demand is 7.89 in absolute terms. When the price rises from $4 to…

A: Demand is the total quantity of products and services for which the customers are ready to pay…

Q: Calculate the elasticity of demand of a good if price falls by 5% and the quantity demanded rises by…

A: The given information is as follows:- Fall in price = 5% = -5 Rise in quantity demanded = 7%…

Q: The cross price elasticity of widgets and gadgets is 4. If gadget prices rise by 15%, the widget…

A: Given Cross price elasticity of widgets and gadgets is 4

Q: Assume that the price cross elasticity of demand for muffins with respect to the price of coffee is…

A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…

Q: Q1/ If you have the following demand function: SP-3PX+2Y Px=2 100 = Y, answer the following P=8 2-…

A: Elasticity of demand measures the degree of responsiveness of demand to change in the price level.

Q: If the price elasticity of supply is 1.5, and a price increase led to a 3% increase in quantity…

A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…

Q: If the price elasticity of demand for a good is 1.5, we would say that its demand is a)inelastic…

A: The measure that depicts the change in quantity being demanded with respect to change in price…

Q: Suppose the cross-price elasticity of demand between goods X and Y is 4. How much would the price of…

A: The given information:

Q: If the price elasticity of demand of for gasoline is 2, then a 15% decrease in quantity demanded is…

A: The elasticity of demand = %change in quantity demanded / %change in the price

Q: If the price elasticity of demand is -0.5 and the income elasticity is +0.3 when what will be the…

A: Price elasticity of demand is a measure of the change in the quantity purchased of a product in…

Q: If the supply elasticity of pork is 0.46, by how much will quantity supplied increase if price…

A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…

Q: The demand of a product dep another product X (P.). The price elasticity of s with respect to X is…

A: Given information: The demand for a product Y depends on its own price (Py), and the price of…

Q: Suppose the price elasticity of demand for a good is – 0.2. If there is a 6% increase in the price…

Question

answer quickly

30.The Price Elastictiy of Demand for a good
is - (0.4). If its price increases by 5% by
what percentage will its demand fall?
Calculate.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
If the elasticity of demand for hamburgers equals 21.5 and the quantity demanded equals 40,000, predict what will happen to the quantity demanded of hamburgers when the price increases by 10 percent. If the price falls by 5 percent, what will happen?
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
What is the price elasticity of demand? Can you explain it in your own words?
What does a price elasticity of demand of 0.39 mean?
If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on price?
Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?