Answered: Please answer The quantity demand for…

Please answer The quantity demand for apples has decrease 5%, while the price has increased 7% a) .71 elastic b) 1.4 elastic c) 1.4 inelastic d) .71 inelastic

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section19.1: Elasticity: Part 1

Problem 1ST: On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the...

See similar textbooks

Related questions

Q: A 3 percent decrease in the price of milk causes a 12 percent increase in the quantity demanded of…

A: Cross-price elasticity (XED) measures the responsiveness of the quantity demanded of one good to a…

Q: If the cross-price elasticity between ketchup and hamburgers is –1.2, a 4% increase in the price of…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: Work out the price elasticity of demand for each and comment on your result. You must also do a…

A: Elasticity is computed by the following formula Elasticity = % change in quantity demanded /…

Q: 3. Ceteris paribus, if the price of a good decreases from $32 to $24, and the quantity demanded of…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…

Q: Assume that the income elasticity of demand for bread is 0.2. A 5% increase in income will cause…

A: income elasticity of demand alludes to the responsiveness of the quantity demanded of a specific…

Q: Calculate the price elasticity of demand as the price of motor vehicles incresease from 920 to 1300…

A: Price elasticity of demand refers to percentage change in quantity demanded with respect to…

Q: If the price elasticity of demand for gasoline is 1, that means:

A: The concept of elasticity was introduced to economics by Alfred Marshal. It refers to the change in…

Q: If you learn that the income elasticity on movies and restaurants are both 1.8 then you can conclude…

A: Answer: The income elasticity of demand for luxurious goods is greater than one. If the income of…

Q: quantity demanded decreases by 5%. Using our elasticity formula, calculate price elasticity and

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

Q: Suppose the price of rice increases from $0.80 to $1.00 a gram and the quantity demanded decreases…

A: The price elasticity of demand shows the responsiveness of demand with the change in price. The…

Q: A decrease in the from 150 to R120 results in the demand for the good increasing by 10%. Calculate…

A: Price elasticity of demand measures the responsiveness of demand when price changes. PEd = %chage…

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: 5000 The demand function for a monopolist's product is p(q) = 1300 – 7q and the average cost per…

A: A monopolist directs an individual, group, or company that defeats and maintains the market for a…

Q: Solve the Elasticities. Describe the significance of the values of the elasticities. 1. An increase…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: If the price of a doughnut is P15,00 quantity that would be purchased is only 6. However, if the…

A: Given information is: Initial price: P15.00 Final price: P12.50 Initial quantity demanded: 6…

Q: cross-price elasticity of demand of 1.2

A: Cross-price elasticity: Cross elasticity of demand refers to the percentage change in quantity…

Q: Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the…

A: Cross Price elasticity can be defined as ratio between the percentage change in quantity demanded…

Q: If a 12 percent increase in the price of Cheerios causes a 22 percent reduction in the number of…

A: The elasticity of demand (or Ed in short-form) is a notable tool applied by the business companies…

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: When the price of gasoline rises by 3 % the quantity demanded falls by 0.12 % . Calculate the price…

A: Here, Given information is: Percentage change in the price of gasoline: 3% Percentage change in the…

Q: If the price elasticity of demand for a good is 1.5, we would say that its demand is a)inelastic…

A: The measure that depicts the change in quantity being demanded with respect to change in price…

Q: When price of tea in local cafe rises from birr 10 to 15 per cup, demand for coffee rises from 3000…

A: Cross elasticity of demand shows the relationship between price of one commodity and demand of…

Q: When price of a good is 13 per unit, the consumer buys 11 units of that good. When price rises to 15…

A: The price elasticity of demand measures the change in consumption of a product or service in…

Q: 1) if the price of orange juice rise 10% , and a as result quantity demanded falls by 10% , then one…

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

Q: A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit…

A: Price elasticity of demand: It refers to the goods and services whose demand changes due to the…

Q: The price elasticity of demand for cigarettes is approximately -0.5. Based on this information, is…

A: Elasticity measures the responsiveness of quantity demanded to changes in price level.

Question

Please answer

The quantity demand for apples has decrease 5%, while the price has increased 7%

a) .71 elastic

b) 1.4 elastic

c) 1.4 inelastic

d) .71 inelastic

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
What is the formula for calculating elasticity?
What does a price elasticity of demand of 0.39 mean?
Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from 8 to 10 if (i) your income is 20,000 and (ii) your income is 24,000. b. Calculate your income elasticity of demand as your income increases from 20,000 to 24,000 if (i) the price is 12 and (ii) the price is 16.
Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?
Plot the price and quantity data given in the demand schedule of exercise 1. Put price on the vertical axis and quantity on the horizontal axis. Indicate the price elasticity value at each quantity demanded. Explain why the elasticity value gets smaller as you move down the demand curve.
What is the formula for line cross-price elasticity of demand?
(Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of demand measures, for a given price, the __________ in quantity demanded divided by the __________ income from which it resulted. b. If a decrease in the price of one good causes a decrease in demand for another good, the two goods are __________. c. If the value of the cross-price elasticity of demand between two goods is approximately zero, they are considered __________.
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior good?
Why is the supply curve with constant unitary elasticity a straight line?
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?
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?