MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Textbook Question
Chapter 6, Problem 8QE
Economists have estimated the following transportation elasticities. For each pair, explain possible reasons why the elasticities differ. (LO6-2)
- a.
Elasticity of demand for buses is 0.23 during peak hours and 0.42 during off-peak hours. - b. Elasticity of demand for buses is 0.7 in the short run and 1.5 in the long run.
- c. Elasticity of demand for toll roads is 4.7 for low-income commuters and 0.63 for high-income commuters.
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Instructions: On the graph below, use the drop-down menu to indicate whether demand is elastic, inelastic, or unit
elastic at each point.
Price ($/visit)
10
14
$
12
10
8
2
0
Demand for Dogs Playing Poker
1
Elastic
per visit.
2
Inelastic
3
4
Unit elastic
5 6 7
Quantity (visitors/day)
What price should you charge if your goal is to maximize your revenues from tickets sold?
Instructions: Enter your answer as a whole number.
o
☆
To calculate elasticity along a demand or supply curve economists use the average percent
change in both quantity and price. This is called the Midpoint Method for Elasticity, and is
represented in the
following
equations:
$150
$120
P $90
7. Referring to the information in the demand curve below, calculate the price elasticity of
demand as price decreases from $90 at point D to $80 at point C. Be sure to show all
calculations here.
$60
$40
1,500
% change in quantity:
% change in price =
H
(1600,130)
Jeesus
F (2000,110)
E (2200,100)
(2400,90)
(2600,80)
(1800,120)
22-21
(22+21)/2
P2-P₁
(P2+P1)/2
2,000
Q
x 100
2,500
x 100
C
(2800,70)
B
A
(3000,60)
3,000
Chapter 6 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 6.1 - If when price rises by 4 percent, quantity...Ch. 6.1 - Prob. 2QCh. 6.1 - Prob. 3QCh. 6.1 - Prob. 4QCh. 6.1 - Prob. 5QCh. 6.1 - Prob. 6QCh. 6.1 - Prob. 7QCh. 6.1 - Prob. 8QCh. 6.1 - Prob. 9QCh. 6.1 - Prob. 10Q
Ch. 6 - Determine the price elasticity of demand if, in...Ch. 6 - A firm has just increased its price by 5 percent...Ch. 6 - When tolls on the Dulles Airport Greenway were...Ch. 6 - Prob. 4QECh. 6 - Prob. 5QECh. 6 - Prob. 6QECh. 6 - Prob. 7QECh. 6 - Economists have estimated the following...Ch. 6 - Prob. 9QECh. 6 - A newspaper recently lowered its price from 5.00...Ch. 6 - Once a book has been written, would an author...Ch. 6 - Prob. 12QECh. 6 - Prob. 13QECh. 6 - Suppose average movie ticket prices are 8.50 and...Ch. 6 - Which of the following producers would you expect...Ch. 6 - Prob. 16QECh. 6 - Prob. 17QECh. 6 - Prob. 18QECh. 6 - Prob. 19QECh. 6 - Prob. 20QECh. 6 - Prob. 21QECh. 6 - Prob. 22QECh. 6 - Prob. 1QAPCh. 6 - Prob. 2QAPCh. 6 - Prob. 3QAPCh. 6 - Prob. 4QAPCh. 6 - Prob. 5QAPCh. 6 - Price elasticity is not just a technical economic...Ch. 6 - Prob. 1IPCh. 6 - Prob. 2IPCh. 6 - Prob. 3IPCh. 6 - Prob. 4IPCh. 6 - Prob. 5IPCh. 6 - In 2004, Congress allocated over 20 billion to...Ch. 6 - In 2004, (Congress allocated over 20 billion to...Ch. 6 - Prob. 8IPCh. 6 - Prob. 9IPCh. 6 - Prob. 10IP
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