You are told that a 10% increase in the price of a good has led to a 1% increase in the quantity supplied of the good after one month. Use the information to answer the following questions? If after one year, the quantity supplied has increased by 25%, calculate the new elasticity of supply.

You are told that a 10% increase in the price of a good has led to a 1% increase in the quantity supplied of the good after one month. Use the information to answer the following questions? If after one year, the quantity supplied has increased by 25%, calculate the new elasticity of supply.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 24SQ: Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity...

See similar textbooks

Related questions

Q: When the price of commodity falls by 200%, the increase in the quantity demanded is measured by 100%…

A: The law of demand is the principle in which the relationship between price and quantity demanded of…

Q: Suppose that there is a large price increase for all types of salad dressing. What would you expect…

A: Cross price elasticity measures the percentage change in quantity demanded of one good due to change…

Q: Calculate the price elasticity of demand. Given that when price changes by 10%, the quantity changes…

A: Here we calculate the price elasticity of demand by using the given information , so the calculation…

Q: What is the price elasticity of demand for a good that experiences a 10% increase in price resulting…

A: The percentage change in the price of the good : 10% increase.The corresponding percentage change in…

Q: Suppose the price of white potatoes rises significantly, what do you predict will happen to the…

A: (1). As the price of white potatoes rise, the demand for sweet potatoes increase. If the price of…

Q: An economist doing an analysis on the market for original paintings finds that a 7% increase in…

A: Price elasticity of supply:Price elasticity of supply can be calculated as follows:

Q: When consumers' incomes rise by 5 percent and other things remain the same, the quantity of frozen…

A: In economics, income elasticity of demand helps the economists to determine the demand for products…

Q: Calculate the price elasticity of supply when the quantity of good X increases from 20000 to 80000…

A: Price elasticity of supply (es) can be defined as the percentage change in quantity supplied due to…

Q: Calculate the price elasticity of demand between each of the adjacent prices. Does elasticity change…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: Pricel?) Q a wanhity demand 50 2. ト 40 35 30 25 3. 20 15 8. 10 10

A: The formula of price elasticity of demand that will be used is given below:

Q: If the price of strawberries falls from $1.50 to $1.00, then the quantity demanded of strawberries…

A: The quantity demanded of the good is defined as the amount of the good the consumers are willing and…

Q: Suppose favourable weather increased the supply of tomatoes so that the price of tomatoes fell from…

A: Price elasticity of demand measures the responsiveness in the quantity demanded of a commodity to a…

Q: Calculate the price elasticity of supply for Barbie's Bakery's cheddar bread. When the price changes…

A: The formula for calculating price elasticity of supply is given below.

Q: Suppose favorable weather increased the supply of tomatoes so that the price of tomatoes fell from…

A: Price elasticity of demand refers to the responsiveness of change in quantity demand due to change…

Q: If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of price…

Q: How is the price elasticity of supply calculated? Explain what it measures.

A: Price elasticity of supply is the measure of responsiveness of producers and resource suppliers to…

Q: From the following table, calculate the price elasticity of demand and use it to predict the…

A: Price elasticity of demand is a measure of sensitiveness of quantity demanded to a change in the…

Q: e current price elasticity of demand for apples is -50, what will be the change in sales (i.e.,…

A: Price elasticity can be described as the sensitivity of the quantity demanded or supplied of a good…

Q: When the price of a good is $6, the quantity demanded is 50 units per month; when the price is $8,…

A: Arc price elasticity refers the change in demand due to change in price so the calculation of the…

Q: On your weekly grocery shopping trip, you notice that the price ofspaghetti has gone up 50 cents a…

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

Q: If price elasticity of supply of a good = 1.45 , how do you interpret this? If price elasticity of…

A: In most cases, sensitivity is measured by changing the amount required in connection with changes in…

Q: When the price of chicken rises 31 %, the quantity demanded of chicken falls 21%. What is the price…

A: Price elasticity is the change in the consumption due to change in prices. However, for a consumer,…

Q: If the price of sugar were to double, would you use less of it? Explain in terms of the determinants…

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

Q: Suppose that when the price rises by 40% for a particular good, the quantity demanded of that good…

A: Price elasticity of demand refers to the degree of responsiveness in demand due to the change in the…

Q: What are the major determinants of a products price elasticity of demand? Studies indicate that the…

A: The quantity being demanded depicts a higher proportional change given a proportional change in the…

Q: Explain why for some goods, the long-run price elasticity of demand is greater than the short-run…

A: Elasticity of demand:- An elastic demand can be explained as a measure wherein a price change…

Q: If apples have an own price elasticity of -1.2, we know the demand is elastic. Can you explain why?

A: Elasticity of demand is the magnitude of change in the quantity demanded for a good due to change in…

Q: uppose that the quantity demanded falls by 31.7 percent when the price increases by 10.6 percent.…

Question

You are told that a 10% increase in the price of a good has led to a 1% increase in the quantity supplied of the good after one month. Use the information to answer the following questions? If after one year, the quantity supplied has increased by 25%, calculate the new elasticity of supply.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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 are the major determinants of a products price elasticity of demand? Studies indicate that the demand for Florida oranges, Bayer aspirin, watermelons, and airfares to Europe are elastic. Why?
If the price of a good or service increases and the total revenue received by the seller declines, is the demand for this good over this segment of the demand curve elastic or inelastic? Explain.
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity supplied is 12 units. What is the price elasticity of supply? a. 0.5 b. 0.8 c. 1.0 d. 1.5
Using the following equation for the demand for a good or service, calculate the price elasticity of demand (using the point form), cross-price elasticity with good x and income elasticity. Q=82P+0.10I+Px Q is quantity demanded, P is the product price. P1 is the price of a related good, and I is income. Assume that P= $10, I = 100, and Px = 20.
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
As the price of good X rises from 10 to 12, the quantity demanded of good Y rises from 100 units to 114 units. Are X and Y substitutes or complements? What is the cross elasticity of demand?
Jills Sausage Dog Stand projects the following demand for Jills sausage dogs: a. Calculate the price elasticity of demand between 2 and 4. Is demand in this range elastic or inelastic? b. Calculate the price elasticity of demand between 4 and 6. Is demand in this range elastic or inelastic?
Prove that price elasticity of demand is not the same as the slope of a demand curve.
The quantity demanded of good X rises from 130 to 145units as income rises from 2,000 to 2,500 a month. What is the income elasticity of demand for good X?
What does a price elasticity of demand of 0.39 mean?
On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?