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Elasticity is expressed in both positive and negative values
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- Importance of price elasticityDefine unit-elastic ?P & A Ch 05 Q10 Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 10%, it should increase the price by ? %. If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be ( larger / smaller ) than the effect 3 months from now. Studies also find that teenagers have a higher price elasticity of demand than do adults. Which of the following statements are consistent with this result? Check all that apply. Adults are more likely to be addicted to cigarettes. Teenagers do not have as much income as adults, so they are more price sensitive. It is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes.
- If a firm finds that it can sell $13,000 worth of a product when its price is $5 per unit and $11,000 worth of it when its price is $6, then Multiple Choice eBook the demand for the product is elastic in the $6-$5 price range. the demand for the product must have increased. elasticity of demand is 074. the demand for the product is inelastic in the $6-$5 price range. Mc 10Is alcohol more elastic than hard seltzerThe price elasticity of demand for a product is 2.15. A percentage change in price is 16%. The initial quantity of the product is 430 units. Calculate the new quantity of the product and use the midpoint method in your calculations.
- The value of elasticity of demand is 0.34 and the percentage rise in quantity is 20% Calculate the change in price.The price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The initial quantity of the product is 190 units. Calculate the new quantity of the product, and use the midpoint methodThe value elasticity of demand is -2.5 This means that the demand is highly inelastic True/False