Elasticity Ex-numerical questionElasticity - Example in class.P* = 1.20, Q*is the price elP* = 1.20, Q* = 4200. Move to P=1.60, Qd=3400, Qs=5000. What is the price elasticity of supply

Elasticity of Supply shows the responsiveness of quantity supplied with respect to the changes in…

Answered: P* = 1.20, Q* = 4200. Move to P=1.60,…

Business

Economics

P* = 1.20, Q* = 4200. Move to P=1.60, Qd=3400, Qs=5000. What is the price elasticity of supply

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 4WNG: The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the...

See similar textbooks

Related questions

Q: Long run elasticity of supply is known as

A: Answer: Note: the question seems to be asking about whether the long-run supply is elastic or…

Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…

A: Elasticity is a measurement of a variable's sensitivity to changes in another variable; most…

Q: Elasticity - Example in class. P = 1.20, Q* = 4200. Move to P=1.60, Qd=3400, Qs=5000. What is the…

Q: Given a demand curve of P=178-5Qd and supply of P=4+1Qs, find the price elasticity of demand at…

A: Demand curve equation: P = 178 - 5QdSupply curve equation: P = 4 + 1Qswhere Qd is the quantity…

Q: he demand curve for product Z is given as Q = 2,000 - 20P What is the point of elasticity at a…

A: Demand Curve Q = 2,000 - 20Pprice of $70

Q: Explain the term price elasticity of demand? How is it measured? If the price elasticity is -3 and…

A: Given The price elasticity of demand is equal to -3 The marginal cost of production MC=RM 200 In…

Q: Define elasticity of supply and find the price from the given statement: If Es of a good is 2 and a…

A: The demand of the good is the quantity of a good demanded by buyers at different prices. The supply…

Q: Calculate the elasticity of demand when p = 25. q+400p= 8000

A: Demand means willingness to pay for a good or service.

Q: Assume that the price elasticity of demand is - 2 for a certain firm's product. If the firm raises…

A: The elasticity of demand decides if the rise in the price would lead to rise in the total revenue or…

Q: Price elasticity of supply in the short run and long term

A: Price elasticity of supply is the responsiveness change in the quantity supplied of a product when…

Q: Given a demand curve of P = 124 - 5Qd and supply of P = 63 + 3Qs, find the price elasticity of…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: Given a demand curve of P = 137 - 8Qd and supply of P = 43 + 1Qs, find the price elasticity of…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: Define elasticity of demand and discuss its type with the help of examples

A: The elasticity of demand refers to the responsiveness of the quantity demanded for a good or service…

Q: 300 For the demand function q = D(x) = - ,find the following. X a) The elasticity b) The elasticity…

A: Elasticity is an important concept in modern economics since it quantifies market reaction. It…

Q: Suppose price of a commodity rises by 10% , then supply by a firm increases by 50% Calculate…

A: # The elasticity of supply is a measure of the change in quantity supplied due to change in price.…

Q: The elasticity of supply is +0.34 Comment on the given value of the elasticity of supply whether…

A: Elasticity of supply is given as:- Es = percent change in quantity supplied / percent change in…

Q: None

A: To determine the price elasticity of supply (PES) at the point ( Q = 100 ) for the given supply…

Q: Company XYZ has developed a new product called ABC. The market demand for this product is given as…

A: Only 3 subparts will be solved as per the guidelines. Please post the remaining part separately or…

Q: Given a demand curve of P = 112 - 9Qd and supply of P = 2 + 5Qs, find the price elasticity of demand…

A: The price elasticity of demand measures the degree of responsiveness of demand to change in the…

Q: demand is D = 30 - p and supply is S = 4p. at what price will the own price elasticity of demand be…

A: Price has an inverse relationship with the quantity demanded of a commodity if the commodity is a…

Q: A firm sales 1000 units of a product at a price of $10 per unit. It's price elasticity of supply is…

A: Given information: Total sales unit = 1000 units Price per unit = $10 per unit The elasticity of…

Q: xplain why price elasticity of demand is important for firms to consider when setting their prices…

A: Elasticity of demand depicts how much consumer responds with the change in price. Thus higher the…

Q: Lawnlech sells its laser hedge trimmer at a price of $275, and estimates price elasticity of demand…

A: Elasticity of Demand measures the percentage change in qunatity demanded due to percentage change in…

Q: prices and greater at prices O high; low O low; high

A: Elasticity of supply depicts how much producer responds to the change in the price level.

Q: Elasticity of supply will increase when:

A: Elasticity of supply measures the degree of responsiveness of supply to changes in the price of the…

Q: The market prices of apples has increased by 25% and the quantity demanded falls by 10% Calculate…

A: The given information is as follows:- Rise in market price of apple = 25% Fall in quantity demanded…

Q: The price elasticity of supply for basmati rice (an aromatic strain of rice) is likely to be which…

A: Elasticity of supply is a measure of the responsiveness of the quantity supplied of a good or…

Q: When the price of the jeans was $58 each, the shop sold 100 per month. When they reduced the price…

A: The price elasticity of demand measures the sensitivity or responsiveness of quantity demanded with…

Q: The price of a certain item decreased from $10 to $5. In response to this decrease in price, the…

A: Price elasticity of supply shows how responsive is quantity supplied to changes in price level.

Q: 500-QD Suppose the demand curve for oPad is P = 10 the quantity of oPad. What is the price…

A: Price Elasticity The proportion of a product's quantity demand change to price change is known as…

Q: If an increase in price Of a gel pen from 60 to 80 results to an increase in the quantity supplied…

Q: Calculate the price elasticity of supply from point K to point L. Classify the elasticity for point…

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

Q: Average income increases from $20,000 to $22,00o. Then, the quantity demanded increases from 5000 to…

A: Income is one of the determinants that affect the demand for a good. There is a positive…

Q: Suppose there is a 10% increase in the price of apples. In the immediate short run this elicits a 1%…

A: The Elasticity of supply measures that how much the quantity supplied of a good changes in response…

Q: do you think that education in community colleges has an elastic or inelastic demand? Why? Explain…

A: According to economists, the pricing of some goods/products is extremely/highly inelastic. That is,…

Q: The Congressional Budget has estimated the following responses over a 10-year period to a 10 percent…

A: The price elasticity of demand is refers to the responsiveness of change in quantity demand due to…

Q: Suppose the price elasticity of demand for oil is 0.3 in the short run and 0.8 in the long run. a)…

A: We have different elasticity for long run and short run.

Q: p = 3 +0.5Q s S What is the elasticity of supply? (P=10, Q=14)

A: Price elasticity of supply measures the responsiveness of change in quantity supply to change in…

Concept explainers

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.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.
If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
What are the major determinants of a products price elasticity of demand? Studies indicate that the demand for Florida oranges, Bayer aspirin, watermelons, and airfares to Europe are elastic. Why?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a. Calculate the price elasticity of demand between 90 and 110. b. Is the price elasticity of demand between 90 and 110 elastic, unit elastic, or inelastic? c. Will Erins total revenue rise if she increases the price from 90 to 110? d. Calculate the price elasticity of demand between 110 and 130. e. Is the price elasticity of demand between 110 and 130 elastic, unit elastic, or inelastic? f. Will Erins total revenue rise if she increases the price from 110 to 130?
A college raises its annual tuition from 23,000 to 24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
Charles loves Mello Yello and will spend 10 per week on the product no matter what the price. What is his price elasticity of demand for Mello Yello?
What does a price elasticity of demand of 0.39 mean?
Suppose a university raises its tuition from 3,000 to 3,500. As a result, student enrollment falls from 5,000 to 4,500. Calculate the price elasticity of demand. Is demand elastic, unitary elastic, or inelastic?