QUESTION 1 ne price elasticity of demand of a straight-line demand curve is A. 1 at all points on the curve O B. elastic but does not change at various points on the curve O C. inelastic but does not change at various points on the curve O D. elastic in high-price ranges and inelastic in low-price ranges
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- 2. Calculate the price elasticity for each of the following. State whether price elasticity of demand is elastic, unit elastic, or inelastic. Will revenue rise, decline, or stay the same with the given change in price? The price of pens rises 5%; the quantity demanded falls 10%. a. The price of a ticket to a Boston Red Sox baseball game rises from $10 to $12 a game. The quantity of tickets sold falls from 160,000 tickets to 144,000. C. The price of an economics textbook declines from $50 to $47.50. Quantity demanded rises from 1,000 to 1,075. d The price of water beds rises from $500 to $600. Quantity demanded falls from 100,000 to 80,000.O Quiz Elasticity H X ure.com/courses/26987/quizzes/115065/take Suppose the price elasticity of demand for beer is En = 0.23. What would happen to the amount of beer people would buy if the price of beer increased by 10%? (hint: remember the relationship between price and quantity demanded) O People would buy 23% less beer. O People would buy 2.3% less beer. O People would buy 23% more beer. O People would buy 2.3% more beer. Question 4 1 pts The basic formula for price elasticity of demand is: = % change in Quantity demanded % change in Price O True OFalseI need help with a a) What is the price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523). b) What is the cross-price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523). c) What is the income elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer…
- Use the slider to explore the price elasticity of demand. Price (dollars per cup) 6 5 4 3 2 1 0 5 Unit elastic 10 15 OA. 5 and demand is elastic; 0.2 and demand is inelastic. OB. 0.2 and demand is inelastic; 5 and demand is elastic OC. 5 and demand is inelastic; 0.2 and demand is elastic OD. 0.2 and demand is elastic; 5 and demand is inelastic Price elasticity of demand = 1 Explore the elasticity in the graph and then answer the question. In the graph you have just explored, how does the price elasticity of demand change when the price rises? When the price of a latte is $1 a cup, the price elasticity of demand is elasticity of demand is Demand 20 25 30 Quantity (cups of latte per hour) and when the price is $5 a cup, the priceProauct Pnce Quantity uemanoea $50 40 15 30 25 20 35 10 45 Determine the price elasticity of demand between each of the following prices: Instructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute values). a. Between P = $50 and P2 = $40, Eg= [ b. Between P = $40 and P2 = $30, Ed=[ c. Between P = $30 and P2 = $20, Eg=[ d. Between P= $20 and P2 = $10, Eg=20 Given the demand equation x = 4 + where p represents the price in dollars and x the number of units, determine the elasticity of demand when the price p is equal to $5. Р Elasticity of Demand = Therefore, demand is O elastic O unitary O inelastic when price is equal to $5 and a small increase in price will result in O a decrease in total revenue. O little to no change in total revenue. O an increase in total revenue.
- O the producer should raise the price, but not as high as it was, to increase total revenue. Question 2 3 pts Assume that the price elasticity of demand is 0.20. Given a 10 percent increase in price, we will see a 2 percent decrease in the quantity demanded. O2 percent increase in the quantity demanded. O20 percent decrease in the quantity demanded. O 20 percent increase in the quantity demanded. Question 3 3 pts2 A2 3 D In the picture above the point A2 is half way between the origin and the quantity intercept of the demand curve. The price elasticity at point "2" is O a.0 b. between -co and -1 O c. between-1 and 0. O d. -1Using the demand equation below, what can you conclude about the price elasticity of demand for the good or service represented by the equation? Demand: P = 100 - 4Q O a. Demand is price elastic. O b. The price elasticity of demand varies along the demand curve. O c. Demand is price inelastic. O d. Demand is unitary elastic with respect to price. 4
- 1. Suppose the price elasticity of demand for good air travel is -1.5. Which of the following is a proper interpretation of the price elasticity of demand. a For every 1% increase in the price, the quantity of air travel purchased will increase 1.5% b For every 1.5% increase in the price, the quantity of air travel purchased will increase 1% c For every 1% increase in the price, the quantity of air travel purchased will decrease 1.5% d For every 1.5% increase in the price, the quantity of air travel purchased will decrease 1% 2. Suppose that Frank's income increased from $4,000/month to $4,500/month and as a result, the quantity of good X he purchased increased from 15 units/month to 16 units/month. In this case, good X is _____. a an inferior good b a normal good and a necessity c a normal good and a luxury d none of the aboveion 7 et ered ed out of g tion At point D, demand is: Price X 0.5X 8 0.5Y a. Unit elastic. b. Perfectly inelastic. O c. Inelastic d. Elastic D E QuantityHow is the price elasticity of demand measured? The price elasticity of demand is measured as A. the percentage change in the quantity supplied divided by the percentage change in the quantity demanded. B. the change in the quantity demanded divided by the change in price. c. the slope of the demand curve. D. the percentage change in the quantity demanded divided by the percentage change in price. O E. the quantity demanded divided by price. O O O O