Which of the following statements about the price elasticity of demand are true? (Check all that apply.) Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit, For keyboard navigation... SHOW MORE a b It can be calculated as the percentage change in quantity demanded divided by the percentage change in price. C It shows the responsiveness of quantity demanded to a change in price. d It shows the percentage change in price caused by a 1 percent change in quantity demanded. It is the inverse of the slope of the demand curve.

Which of the following statements about the price elasticity of demand are true? (Check all that apply.) Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit, For keyboard navigation... SHOW MORE a b It can be calculated as the percentage change in quantity demanded divided by the percentage change in price. C It shows the responsiveness of quantity demanded to a change in price. d It shows the percentage change in price caused by a 1 percent change in quantity demanded. It is the inverse of the slope of the demand curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In 2019, 360,000 electric vehicles (EVs) were sold in the United States. Show your formula and calculation steps. a. Suppose the average price of these cars was $40,000. Calculate price elasticity of demand if a $2,000 tax credit caused an increase in sales by 20,000 EVs. b. Calculate cross-price elasticity if a 20 percent increase in the price of gasoline caused an increase in sales of EVs by 30,000.
Which of the following statement is correct about the price elasticity of car and the price elasticity of ice creama. The price elasticity of car is lower than the price elasticity of ice cream.b. The price elasticity of car is greater than the price elasticity of ice cream. c. There is not any relation between the price elasticity of car and the price elasticity of ice cream.d. All answers are wrong
The accompanying table lists the cross-price elasticities of demand for several goods, where the percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good. ( please see image) a. Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question? b. Compare the absolute values of the cross-price elasticities and explain their magnitudes. For example, why is the cross-price elasticity of McDonald’s burgers and Burger King burgers less than the cross-price elasticity of butter and margarine? c. Use the information in the table to calculate how a 10% increase in the price of Pepsi affects the quantity of Coke demanded. d. Use the information in the table to calculate how a 5% decrease in the price of gasoline affects the quantity of SUVs demanded.
Which of the following could have caused the price elasticity of demand to change from a value of -0.5 to -0.8? Question 20 options: 1) The increase in substitutes good available. 2) A rise in the price of substitute good. 3) A rise in demand for the good. 4) A rise in income. Next Page
b. Studies indicate that the price elasticity of demand for cigarettes is about -0.2. If a pack of cigarettes currently costs $4, and the government wants to reduce smoking by 25 percent, by how much should it increase the price?
Because of a typhoon in the city, the price of cabbages rose from P60.00 to P80.00, and the quantitydemanded falls from 150 kilos to 100 kilos.a. Compute for the price elasticity for this price range. b. What is the interpretation of this price elasticity of demand? c. What happens to the total revenue of sellers when the price of cabbages increases?
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Round up the answers to the nearest hundredths. Suppose that business travelers and vacationers have the following demand for airlinetickets from Japan to Philippines. Price in (US Dollars $) Quantity Demanded for Tickets (Business Travelers) Quantity Demanded for Tickets (Vacationers) 150 2,100 1,000 200 2,000 800 250 1,900 600 300 1,800 400 a. As the price of tickets rises from $200 to $250, what is the price elasticityofdemand for:(i) business travelers? (ii) vacationers?b. Why might vacationers have a different elasticity from business travelers?
Is the price elasticity of demand affected by the nature of the commodity being necessary or unnecessary, explain by example? You Illustrate your answer!
Suppose that demand schedule for discs is represented in the table below. PRICE ($) 8 10 QUANTITY DEMANDED (INCOME $10,000) 40 32 QUANTITY DEMANDED (INCOME $12,000) 50 46 If your income is $12,000, use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10. Select one: O a. The price elasticity of demand for discs is equal to -1.25 and demand is elastic. b. The price elasticity of demand for discs is equal to -1 and demand is inelastic. c. The price elasticity of demand for discs is equal to -0.375 and demand is inelastic. Od. The price elasticity of demand for discs is equal to -1 and demand is unit elastic.
Describe in a paragraph, What is price elasticity? . How does Moore’s Law relate to this concept? . What’s special about falling chip prices compared to price drops for products like clothing or food?