The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by... A) 1 percent and quantity supplied rises by 5 percent B) 4 percent and quantity supplied rises by 4 percent C) 8 Percent and quantity supplied remains the same D)10 percent and quantity supplied rises by 2 percent

The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by... A) 1 percent and quantity supplied rises by 5 percent B) 4 percent and quantity supplied rises by 4 percent C) 8 Percent and quantity supplied remains the same D)10 percent and quantity supplied rises by 2 percent

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

Which of the following would NOT cause an increase in demand for Canadian canola? The price of Canadian canola falls. People are worried about the availability of canola in the future, and so they are hoarding (stockpiling) it now. Other countries need canola to feed their livestock (such as pigs), but they are not able to grow enough themselves. The price of other similar plants increases.
Consider the demand for soap shown in Figure 1 above. What is the quantity demand for soap if the price of a pound of soap is $5? A) 210 pounds B) 248 pounds C) 286 pounds D) 305 pounds
If a strong economic recovery boosts average incomes, what would happen to the equilibrium price and quantity of a normal good and of an inferior good? The equilibrium price and quantity of a normal good would rise; those of an inferior good would fall. of a normal good would fall; those of an inferior good would rise. of a normal good would rise; those of an inferior good would also rise. of a normal good would fall; those of an inferior good would also fall.
Consider the weekly supply of gasoline in Figure 1. How much gasoline will producers wish to sell if the price of a gallon of gasoline is $1.20? A) 100K gallons b) 140K gallons C) 236K gallons D) 308K gallons
If the percent rise in price is larger than the percent decline in quantity, then: the demand for your product could be either elastic or inelastic. the demand for your product is elastic. the demand for your product is inelastic. the demand for your product could be neither elastic nor inelastic.
a. The supply curve for televisions is given by QS=−20+4� where QS represents the quantity of televisions supplied and P is the price of televisions. The market demand for televisions is given by QD=400−10� where QD is the demand for televisions. Find the equilibrium price and quantity of televisions. b. Using the equations in part (a), calculate the price elasticity of demand for televisions when price changes to $25. c. Describe what will occur if price falls fellow equilibrium price calculated in part (a). How will this situation will be corrected?
An increase in quantity demanded is caused by an increase in the price of a substitute of the product. an increase in consumers' income. a decrease in the price of the product. a shift in tastes and preferences.
In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. 1. What is the equilibrium price and quantity? 2. What is the price elasticity at a price of £35? 3. What do you expect will happen to total expenditure on this good if the price increases from £35 to £40? Is this expectation confirmed if you calculate the total revenue for each price?
The elasticity of demand is used to determine if a change in price results in a shortage or a surplus. find the market equilibrium. determine if consumers will or will not buy a product. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes.
If consumers' sensitivity to price changes makes demand elastic, then a price decrease leads to: an increase in total revenue. a decrease in supply. an increase in supply. a decrease in total revenue.
Suppose the change in the price of good A from $20 to $70 causes the individual's demand for good B to shift from D2 to D1. What is the cross price elasticity? Good A Good B $140 $140 $90 $90 $70 $70 $20 $20 D, D, D, 35 45 35 45 10 70 105 140 10 70 105 140
suppose there is a spring producing 100 gallons of water each day, without cost to smith, who owns the land around the spring. nearby farmers need the water due to a recent drought a.) show the resulting equilibrium b.) what is the price elasticity of demand at the equilibrium