Compute the elasticity values. State the degree of elasticity and the nature of the goods. 1. An increase in the price of Good Y from $5.00 to $6.00 causes the demand for Good X to decrease from 1000 units to 700 units. 2. An increase in income from $3000 to $4000 causes the demand for chicken to increase from 6 to 7 kilos. 3. The equation for a demand curve is P = 48 – 3Q. What is the elasticity in moving from a quantity of 5 to a quantity of 6? 4. The equation for a supply curve is P = 3Q – 8. What is the elasticity in moving from a price of 4 to a price of 7?
Compute the elasticity values. State the degree of elasticity and the nature of the goods. 1. An increase in the price of Good Y from $5.00 to $6.00 causes the demand for Good X to decrease from 1000 units to 700 units. 2. An increase in income from $3000 to $4000 causes the demand for chicken to increase from 6 to 7 kilos. 3. The equation for a demand curve is P = 48 – 3Q. What is the elasticity in moving from a quantity of 5 to a quantity of 6? 4. The equation for a supply curve is P = 3Q – 8. What is the elasticity in moving from a price of 4 to a price of 7?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Compute the elasticity values. State the degree of elasticity and the
nature of the goods.
1. An increase in the
the
units.
2. An increase in income from $3000 to $4000 causes the demand
for chicken to increase from 6 to 7 kilos.
3. The equation for a demand curve is P = 48 – 3Q. What is the
elasticity in moving from a quantity of 5 to a quantity of 6?
4. The equation for a supply curve is P = 3Q – 8. What is the
elasticity in moving from a price of 4 to a price of 7?
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