When the price of coffee is $ 5 , the quantity demanded is 400 cups per day . When the price falls to $ 4 , the quantity demanded increases to 600. Given this information , we know that the demand for bubble gum is a inelastic b . elastic c. unit elastic d . perfectly inelastic .

When the price of coffee is $ 5 , the quantity demanded is 400 cups per day . When the price falls to $ 4 , the quantity demanded increases to 600. Given this information , we know that the demand for bubble gum is a inelastic b . elastic c. unit elastic d . perfectly inelastic .

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

See similar textbooks

Related questions

Q: 1. Trek Inc., which sells bikes, changed the price of their foldable bikes from P3,000 to P3,500. As…

Q: Suppose, the price elasticity of demand for sugar is 0.65. What type of elasticity sugar is having?…

A: Elasticity of demand measures how much responsive the quantity demanded of any product is towards…

Q: is a measurement of demand elasticity, calculated by multiplying slope of the demand by a ratio of…

A: There are different methods to measure demand elasticity such as arc method, point method, and so…

Q: How do I know if a product is elastic or inelastic? How can I determine how elastic or inelastic it…

A: Elasticity of a product measures its responsiveness to the change in the level of price(P). It is…

Q: What type of demand does a person who has high cholesterol, and must exercise for an hour every day,…

A: The answer is - D. Inelastic

Q: If the cross-price elasticity of demand between two goods is +2, how would you describe the…

A: Demand elasticity is primarily defined as the change in demand as a result of a change in price,…

Q: 1.Assume that the Price Elasticity of Demand for a product is -.32. Currently, at the price of P…

A: Elasticity is the change in one variable due to the change in some other variable. The price…

Q: When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price…

A: The amount that a good's desired quantity is sensitive to price fluctuations is measured by its…

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: Do you think the price elasticity of demand for toyota( clutch vehicles ) will increase, decrease,…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Suppose the local semi-pro baseball team raises the price of their tickets from $15 to $25. Having…

A: Price elasticity of demand: It measures the percentage change in the quantity demanded for a 1%…

Q: write at least 15 differences of Elasticity and slope.

A: {"Elasticity of demand"} ED of a good is the response in the demand(DD) of the commodity as the…

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: A bag” that is sold at many local supermarkets. Its customers like lettuce but don’t care so much…

A: Option A is correct Option A is correct because the demand for lettuce is changing i.e. at same…

Q: What is relative elasticity and inelastic

A: demand= Desire+ willingness+ ability

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: 4. When the Price of a product was changed 35% the quantity demand did not change. Calculate the…

A: The law of demand states that there is an inverse relationship between price of a good and its…

Q: . When sellers of vegetables made a 50% change in price, it resulted in 20% change in quantity…

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

Q: The demand for toothpaste is more than the demand for diamond earrings. Oa. elastic Ob. inelastic

A: Elasticity is a measure to calculate the responsiveness of price change and demand change and their…

Q: If a 25 percentage change in price generates a 25 percentage decrease in the quantity demanded, then…

A: Given data: Percentage change in price is 25% Percentage change in quantity demanded is 25%

Q: From the data in Table about demand for smart phones, calculate the price elasticity of demand from:…

A: Price elasticity is the responsiveness of change in quantity demanded to the change in price.

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: Economics Partners, a consulting firm, estimates the elasticity of ice cream cones to be 1.9. A. If…

A: Given: The elasticity of ice cream cones=1.9 Change in price of ice-cream=5%

Q: 8. When the price of a bran muffin is $2.00, the quantity demanded is 90 bran muffins per day. When…

A: Elasticity of demand is an important economic concept which is used to measure the degree of…

Q: If the price elasticity of demand is 6, then a 3 percent decrease in price results in a type your…

A: The markets are the place where the buyers and the sellers of the goods and services tend to…

Q: When the Price of a product was changed by 30%, the quantity demand has increased by 30%. Calculate…

A: The elasticity of demand measures the responsiveness of quantity demanded of a good to a change in…

Q: Price of beef increases by 12% and the quantity of beef demanded falls by 10%. Calculate the…

A: Elasticity of Demand: Elasticity of Demand is the degree of responsiveness of demand to changes in…

Q: 1) Give an example of a product that is elastic and explain why. 2) Give an example of a product…

A: ANS PED is the measure that shows how the quantity demanded (QD) of a good change when the level of…

Q: As a result of 5 percent fall in the price of food, it's Demand rises by 12%. Find the price…

A: Below is the given values: The percentage fall in price = 5% The percentage rise in price = 12%

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: Due to 5 percent fall in the price of food, it's demand rises by 12 percent. Find the price…

A: The percentage decrease in price = 5%The percentage rise in demand = 12%

Q: In the graph, when the elasticity curve cut the quantity axis sharply in vertical axis. What does…

A: The elasticity of demand refers to the degree of responsiveness of quantity due to a change in its…

Q: 2. Determine the elasticity when the price of a product is lowered from $50 to $43 while the…

A: Price elasticity of demand measures the change in the percentage of demand when there is a…

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: 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

3. When the price of coffee is $ 5 , the quantity demanded is 400 cups per day . When the price falls to $ 4 , the quantity demanded increases to 600. Given this information , we know that the demand for bubble gum is

a inelastic

b . elastic

c. unit elastic

d . perfectly inelastic .

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

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

What does a price elasticity of demand of 0.39 mean?
Why is the supply curve with constant unitary elasticity a straight line?
Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?
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?
Why is the demand curve with constant unitary elasticity concave?
What is the price elasticity of demand? Can you explain it in your own words?
The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?
Over time, technological advance increases consumers incomes and reduces the price of smartphones. Each of these forces increases the amount consumers spend on smartphones if the income elasticity of demand is greater tha____________ and if the price elasticity of demand is greater than_____________. a. zero, zero b. zero, one c. one. zero d. one, one
Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
What is the formula for line cross-price elasticity of demand?
From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the price elasticity of demand is a. 1/5. b. 1/2. c. 2. d. 5.