QUESTION 1 Encyclopedias were widely used back in the 1970s. Most students and scholars used the encyclopedia to find information on various topics. There was only a small percentage decrease in quantity demanded for encyclopedias in the 1970s when there was a relatively larger percentage increase in price. Today, in the age of the internet, a small percentage increase in price of encyclopedias results in a relatively larger percentage decrease in the quantity demanded. 1. The price elasticly of demand for encyclopedias in the 1970s was relatively less elastic than today. 2. If the price for encyclopedias increased in the 1970s, the point price elasticity of demand for encyclopedias woud have been greater than 1. 3. The price elasticity of demand for encyclopedias, after the internet, is considered elastic. Which of the above statements are true? O Only 1 is true. O Only 2 is true. O Only 3 is true. Both 1 and 2 are true. O Both 1 and 3 are true.

QUESTION 1 Encyclopedias were widely used back in the 1970s. Most students and scholars used the encyclopedia to find information on various topics. There was only a small percentage decrease in quantity demanded for encyclopedias in the 1970s when there was a relatively larger percentage increase in price. Today, in the age of the internet, a small percentage increase in price of encyclopedias results in a relatively larger percentage decrease in the quantity demanded. 1. The price elasticly of demand for encyclopedias in the 1970s was relatively less elastic than today. 2. If the price for encyclopedias increased in the 1970s, the point price elasticity of demand for encyclopedias woud have been greater than 1. 3. The price elasticity of demand for encyclopedias, after the internet, is considered elastic. Which of the above statements are true? O Only 1 is true. O Only 2 is true. O Only 3 is true. Both 1 and 2 are true. O Both 1 and 3 are true.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the following demand schedule for bags. Quantity 60 56 48 Price $13 $15 $17 When the price of bags rises from $13 to $15, the price elasticity of demand is approximately -0.5 (Calculate using the midpoint formula, round your answer to one decimal place, and enter a "-" if your answer is negative) When the price of bags increases from $15 to $17, the total expenditure will because the price elasticity of demand is
Question 2 The following information reveals the market condition of fruit juice: Price ($) Quantity demanded (No. of bottles) 50 1000 80 880 110 500 Use midpoint method to calculate the price elasticity of demand of fruit juice between $80 and $110. Show your workings and round your answer to 2 decimal places. Based on your answer, is this an elastic, inelastic or unit elastic demand? Explain.
draw a market demand for a good that has many substitutes. You will recall that price elasticity of demand for a particular good or service is influenced by various factors, including whether the good or service under consideration has substitutes. Is this demand price elastic or inelastic? Why do you think this? Next draw a market demand for a good that has few substitutes. Is this demand price elastic or inelastic and why do you think this? With these two demand curves in mind, please answer the following questions: Discuss a real world example of each and explain why you think they are good examples of the two types of market demand. Why? If you wanted to increase revenue, which demand curve would you rather face as a company? Why? If the demand curves were linear, how would you modify your answer to the question above? (Hint: think about what happens to revenue across a linear demand curve.) Consider the market demand curve of a good with a lot of substitutes—perhaps the…
Which of the following goods would you expect to have the lowest price elasticity of demand? Diamonds Yachts Rice Vacation Homes
Border Crossings from the USA into British Columbia , Canada Up 15 Percent Cheap gasoline brought 964,000 American visitors through border crossings in B.C. during the first four months of 2016, a 15 percent increase from the previous year. (Source: Vancouver Sun, July 9, 2016) The U.S. energy Information Administration reports the average price of gasoline was $2.83 a gallon in July 2015 and $2.22 a gallon in July 2016. Calculate the price elasticity of demand for British Columbia border crossings and interpret your results in non-economic terms With COVID-19 and the temporary closure of the Canada-US border to non-essential travel, is the concept of price elasticity of demand still relevant to doing business in Canada, especially in the travel and tourism sector? Explain briefly.
Give typing answer with explanation and conclusion “This week, my place of employment, Super-Save Supermarket, lowered the price of apples from $1 to 80 cents per pound. The quantity of apples we sold last week was 200 pounds. And this week, the quantity sold was 250 pounds. I’m interested in knowing about the price elasticity of demand. In this case, can it be described as elastic, inelastic, or unitary elastic? What do you predict will happen to total revenue?”
1)Finish the following sentence. A value of price elasticity of demand equal to 2 means that.... * a)Price rises twice as fast as an increase in demand b)The percentage quantity demanded falls by two times the percentage increase in price c)When price increases, quantity demanded increases twice as much d)Demand is relatively inelastic e)Quantity demanded falls by two times the amount of increase in price
Consider the following demand schedule for movie tickets. Data for movie tickets Price ($ per ticket) Quantity demanded (tickets per day) 7 300 8 200 9 100 Suppose the price of a movie ticket falls from $9 to $7. Calculate the price elasticity of demand. Show work:
On most days, the price of a rose is $1, and 8,000 roses are purchased. On Valentine's Day, the price of a rose jumps to $2, and 30,000 roses are purchased Use the line drawing tool to ilustrate the price and quantity increase Label the line you draw D Carefully follow the instructions above, and only draw the required objects Based on this information, we do not know much about the price elasticity of demand for roses because the demand curve was not constant However, we do have constant supply What is price elasticity of supply?(enter your response to 2 decimal places) Prices pos Quantity hands of per day) (C)
Grilled cheese sandwiches are $4, and the quantity demanded is 60. When the price falls to $3/sandwich, the quantity demanded rises to 80. What is the price elasticity of grilled cheese sandwiches? Widgets are $3, and the quantity demanded is 200. When the price of widgets rises to $5, the quantity demanded falls to 100. What is the price elasticity of demand for widgets? Coffee is $1 per cup, and the quantity demanded is 500. The price of coffee rises to $1.25 per cup, and the quantity demanded falls to 400. What is the price elasticity of demand for cups of coffee?
Consider the following demand schedule for movie tickets. Suppose the price of a movie ticket falls from $9 to $7. Calculate the price of elasticity of demand and identify the type of elasticity.
Use the following information to answer questions 10 and 11: Consider the following demand schedule for shoes. Price $5 $10 $15 $20 $25 $30 $35 $40 Quantity Demanded 385 365 345 325 305 285 265 245 10. Suppose that the store increases the price of shoes from $25 to $30. Using the mid-point approach, calculate price elasticity of demanded. 11. Suppose that the store increases the price of shoes from $25 to $30. Based on this information, the demand curve would be classified as (select one): a. inelastic b. elastic c. unit elastic