Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with your answers. Degree of Elasticity Relatively elastic (E> 1) Airline travel, long run Unitary elastic (E = 1) Shoes Relatively inelastic (E< 1) Coffee Airline Travel: total revenue will slightly decrease Shoes: total revenue will decrease Coffee: total revenue will decrease Estimate v 2.4 0.9 0.3 Decrease in Quantity Demanded Increase in Price (%) (%, do not include a negative sign) Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total revenue in each market? 20% 20% 20% 21.6% 90.0% 81.0%

Instructions: Enter your responses as a percentage rounded to one decimal place if necessary. Do not include a negative sign (-) with your answers. Degree of Elasticity Relatively elastic (E> 1) Airline travel, long run Unitary elastic (E = 1) Shoes Relatively inelastic (E< 1) Coffee Airline Travel: total revenue will slightly decrease Shoes: total revenue will decrease Coffee: total revenue will decrease Estimate v 2.4 0.9 0.3 Decrease in Quantity Demanded Increase in Price (%) (%, do not include a negative sign) Given the increase in price and your calculated percentage change in quantity demanded, what is the predicted impact on total revenue in each market? 20% 20% 20% 21.6% 90.0% 81.0%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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