Answered: 20) Suppose the fare for the New York…

20) Suppose the fare for the New York Subway system increases by 25%. Will demand be more inelastic for riders in 1 week or 1 year. Select one

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 17SQ

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Question

20) Suppose the fare for the New York Subway system increases by 25%. Will demand be more inelastic for riders in 1 week or 1 year. Select one

21) According to the law of demand when price increases the quantity demanded of a good (increases or decreases- SELECT ONE)
decreases

22) Suppose the price elasticity of demand for a product is .8. If a supplier wants to increase revenue, they should (increase or decrease price- SELECT ONE) decrease

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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