TABLE 1 PRICE ELASTICITY OF DEMAND FOR GOODS AND SERVICES Basket of goods and services Price elasticity of demand Basket 1 Airline travel Restaurant meals Fresh fish New cars Basket 2 Cigarettes Coffee Gasoline Electricity Source: The Economy Today (Schiller) a) i) c) ii) b) i) Define price elasticity of demand. ii) 432 2.4 NNN 2.3 2.2 1.2-1.5 4321 0.4 이이이이 0.3 0.2 0.1 Determine and explain the price elasticity of demand for goods and services in Basket 1 and Basket 2. Sketch the demand curve to show the elasticity of demand for goods and services in Basket 2 Discuss two (2) factors that influence its elasticity. Using a diagram explain the effect of a decrease in income on the market for new car.

TABLE 1 PRICE ELASTICITY OF DEMAND FOR GOODS AND SERVICES Basket of goods and services Price elasticity of demand Basket 1 Airline travel Restaurant meals Fresh fish New cars Basket 2 Cigarettes Coffee Gasoline Electricity Source: The Economy Today (Schiller) a) i) c) ii) b) i) Define price elasticity of demand. ii) 432 2.4 NNN 2.3 2.2 1.2-1.5 4321 0.4 이이이이 0.3 0.2 0.1 Determine and explain the price elasticity of demand for goods and services in Basket 1 and Basket 2. Sketch the demand curve to show the elasticity of demand for goods and services in Basket 2 Discuss two (2) factors that influence its elasticity. Using a diagram explain the effect of a decrease in income on the market for new car.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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TABLE 1 PRICE ELASTICITY OF DEMAND FOR GOODS AND SERVICES
Basket of goods and services
Price elasticity of demand
Basket 1
Airline travel
Restaurant meals
Fresh fish
New cars
Basket 2
Cigarettes
Coffee
Gasoline
Electricity
Source: The Economy Today (Schiller)
a) i)
b) i)
c)
ii)
d)
ii)
Define price elasticity of demand.
NNN,
1.2-1.5
Discuss two (2) factors that influence its elasticity.
TONWA
Determine and explain the price elasticity of demand for goods and services
in Basket 1 and Basket 2.
Sketch the demand curve to show the elasticity of demand for goods and
services in Basket 2
Using a diagram explain the effect of a decrease in income on the market for new
car.
If price of fresh fish keeps on increasing in the market, discuss the type of price
control that the government can use to control the increasing price of fresh fish.

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