If the price elasticity of demand for a good is 1.5, we would say that its demand is  a)inelastic b)elastic c)increasing d)normal

Q: If the price elasticity of demand for an annual magazine subscription is -1.6, what happens in the…

A: Option (a) is correct.

Q: a) What is the value of the slope of the demand curve? Remember to enter a minus (-) sign to…

A: a) Slope of the demand curve = horizontal interceptvertical intercept  = 1212 = 1  The demand curve…

Q: 4. Suppose that when the price rises by 40% for a particular good, the quantity demanded of that…

A: Price elasticity of demand (Ep) = % Change in quantity demanded / % Change in the good's own price

Q: c. What is a “complementary good”? Give an example. Does it have a positive or negative…

A: The complementary goods are the goods which are consumed simultaneously. The complementary goods…

Q: Suppose that the market for frozen orange juice is in equilibrium at a price of $0.80 per can and a…

A: Price elasticity of demand describes how sensitive or reactive the quantity demanded of a good or…

Q: 3. Suppose that you are considering raising the price of coca-cola. What factors would you want to…

A: Substitute goods are those goods which help the consumers in satisfying the same type of wants.…

Q: 1. What is the price elasticity of demand for fast food in China? Is it elastic or inelastic?

A: The demand for fast food is highly responsive to the change in price. When the price of fast food…

Q: a) Explain what is “income elasticity of demand”. b) Explain what is a “normal good”. Give an…

A: As it is not mentioned that which parts are to be answered, so only first three parts will be…

Q: If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when…

A: Cross elasticity of demand (XED) is the responsiveness of a percentage change in quantity demanded…

Q: Suppose the cross-price elasticity of demand between raspberry jam and strawberry jam is 7.5. The…

A: Cross price elasticity of demand shows the responsiveness of a percentage change in price of one…

Q: A) Read each statement below and indicate if the price elasticity of demand for the product is most…

A: A) Elasticity of demand is defined as the responsiveness of the quantity demanded of a good to a…

Q: State whether the following statements are true or false  a. If a product has price elasticity of…

A: a.) False, because if the price elasticity of demand is greater than 1 then a increase in the price…

Q: If the cross-price elasticity of demand of two goods is negative, what are those two goods called?

A: Cross price elasticity of demand means the magnitude of change in the quantity demanded for a given…

Q: Assume the cross-elasticity of demand for car tires with respect to the price of cars is 2. What…

A: The cross price elasticity measures the responsiveness of quantity demanded for one good to the…

Q: QUESTION 1 When the price of fresh fish increases 10%, quantity demanded is unchanged. The price…

A: Elasticity measures the percentage change in quantity due to percentage change in price.  The demand…

Q: 3. Suppose a 10% increase I price of a different product (such y), has resulted in a 30% decrease in…

A: complement goods are those which is depend on each other like bread and butter , if the change in…

Q: If the absolute value of elasticity of demand for chocolate is 0.64 then the demand for chocolate is…

A: Price elasticity measures the change in quantity due to change in price.  Income elasticity measures…

Q: .If someone told you the cross price elasticity between driving and riding the Metro is -5, this is…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 1. For each of the following pairs of goods, identify the good that you would expect to be more…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…