A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most likely have a price elasticity of demand that is     a little lower than 1   exactly 1   a little higher than 1   as high as 10

Q: A good that is a luxury, that is expensive and that has many substitutes is likely to have a price…

A: Option D is correct

Q: The price elasticity of supply is 1.2​, and price increases by 4 percent. As a​ result, the quantity…

A: The ratio between change in quantity of a good supplied and a change in determinants of supply is…

Q: An economist doing an analysis on the market for original paintings finds that a 7% increase in…

A: Price elasticity of supply:Price elasticity of supply can be calculated as follows:

Q: If the price elasticity of supply is 2, and a price decrease led to a 16% decrease in quantity…

A: The price elasticity of supply can be representing as follows:

Q: cross-price elasticities

A: Elaticity shows much demand of a good changes due to change in the price of a good.

Q: Comment on the elasticity of demand for a good whose demand falls by 40% with a 10% rise in price.

A: We are given with a type of good whose demand falls almost by 40% if the firm raises the market…

Q: ‍If the own-price elasticity of demand is -5 and there is a 2% increase in the price, by what…

A: The price elasticity of demand measures the responsiveness of the quantity demanded of a good to a…

Q: the market demand for a good at $4 per units is 100 units. the price rises and as result its market…

A: Initial price = $4 Initial quantity = 100 units New price = ? New quantity = 75 units Elasticity of…

Q: things equal, if à góóð háš móré substitutes, its price elasticity of demand is

A: According to the question If the goods has more substitute or the prices of the goods with many…

Q: Calculate the elasticity of supply if rise in price is 30% and the rise in quantity supplied is 37%

A: According to the above given question, the information is as follows:- Rise in price = 30%  Rise in…

Q: Calculate the price elasticity of supply for Brenda's Bakery's cheddar bread. When the price changes…

A: The price elasticity of supply (PES) shows the responsiveness of the quantity supplied of a good to…

Q: The Screamin' Jay Hawkins Co. has decided to lower the price of their Nimbus 2001 from $3,900 to…

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

Q: what does it mean for cross price elasticity of demand when it equals to infinity?

A: Cross price elasticity of demand is the ratio of proportionate change in demand of a good with…

Q: If elasticity of demand is -2 and the fall in price is $20  Find the change in the quantity…

A: The information being given is:- Elasticity of demand = -2 Change in price = -20% = -0.20 We have to…

Q: what is % change in quantity. The price elasticity of demand is 2. The % change in price is equal to…

A: Given price elasticity of demand = 2 Percentage change in price = 5%

Q: Is the price elasticity of demand or supply more elastic over a shorter or a longer period of time?…

A: Price elasticity of demand refers to the change in the demand due to the change in the price whereas…

Q: If elasticity of demand is 0.61 and change in quantity demanded is 32% Find change in Price

A: According to the above mentioned question, we have:- elasticity of demand = 0.61  Change in quantity…

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

A:

Q: What effect does the availability of many substitute have on the elasticity of demand for a good

A: Meaning of Price Elasticity of Demand: The term price elasticity of demand refers to the…

Q: When the number of Substitutes are more than that good will have what kind of demand?

A: # Substitute goods are those goods which can be used at place of one other. For example pepsi and…

Q: Which price elasticity of demand values or range of values do we see most frequently in the real…

A: Price Elasticity of demand (PED) is useful for understanding consumer behavior.. It helps in the…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.