A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most likely have a price elasticity of demand that is     a little lower than 1   exactly 1   a little higher than 1   as high as 10

Q: The elasticity of supply measures the sensitivity of a. price to changes in supply. b. quantity…

A: (Q) The elasticity of supply measures the sensitivity of   a. price to changes in supply. b.…

Q: The demand would be less elastic when the number of Substitutes are more for a good True/False

A: # The availability of more number of substitute for a good means that the good has many more other…

Q: Elasticity of demand depends on a number of factors, including whether the product in question is a…

A: The price elasticity of demand measures the percentage change in the quantity demanded of the good…

Q: Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in…

A: Price Elasticity of Demand:- Price Elasticity of demand can be named as the connection between the…

Q: A good with an income elasticity of demand which is positive but less than one is classified as an…

A: The Income elasticity of demand states that how much the quantity demanded will change in context…

Q: If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30…

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Q: Why is the cross-price elasticity of demand positive for substitutes? [

A: By the concept of the cross-price elasticity, the responsiveness in the quantity demanded of one…

Q: Tim makes twice as much money as his brother Andrew, but they equally like to go to baseball games.…

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Q: a good tends to have a small price elasticity of demand if

A: In economics, goods are the final products that are consumed by the people.

Q: An inferior good is a good whose income elasticity of demand is less than 0. True False

A: In economics, an inferior good is one whose demand falls as consumer income rises, as opposed to…

Q: Price elasticity of demand for gasoline is -0.5.  If the price of gasoline rises by 10%   A.…

A: Quantity demanded is the total quantity of products and services that customers demand at a specific…

Q: Producers' total revenue will decrease if the price rises and demand is elastic. income…

A: Revenue: It means the value of all sales of goods and services recognized by a company in a period.…

Q: A firm sells a good that is perceived by consumers as a necessity. It also has few substitutes. This…

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Q: When the price of a good increased from $19 to $23, the quantity demanded dropped from 12 units to 9…

A: Price elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: Cross-price elasticity of demand

A: The elasticity of demand measures the % change in quantity demanded to % change in price. The…

Q: The income elasticity of demand with a value more than one indicates that the demand is…

A: The income elasticity of demand measures the proportionate change in quantity demanded of a good due…

Q: A change in price of $10 from initial price of $15 leads to a change in quantity demanded of 100…

A: The economics as a study is based upon the idea that the resources which the economies have tend to…

Q: What effect does the availability of many substitute have on the elasticity of demand for a good

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

Q: If the price elasticity of demand for a product is 5, and prices decrease 10 percent then demand…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: he cross price elasticity of demand for a good is the percentage change in the quantity demanded in…

A: The cross elasticity of demand refers to the measurement of the responsiveness in the quantity…

Q: The price elasticity of demand measures:   A.    Responsiveness of quantity demanded to a change in…

A: The elasticity(Ep) of the demand(dd) captures the responsiveness of dd with reference to the…

Q: Comment on the Elasticity of demand for a good having high number of substitutes

A: The concept of elasticity of demand for any good is a measure and indicator which shows how the…

Q: .If a good or service has a large number of easily available substitutes, it is more ________.…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: The demand for a good will be less price elastic, Select one: a. The larger is the percentage of…

A: Any change in market factors will directly or indirectly influence the buying decision of a consumer…

Q: The larger the number of substitutes a product has, the more elastic it is: the fewer the number of…

A: In a market, the elasticity of demand and supply depends upon the nature of the product and other…

Q: The more time consumers have to adjust to a change in price:         the smaller will be the price…

A: Answer-  Need to find - The more time consumers have to adjust to a change in price Evaluating the…

Q: Positive income elasticity implies that as income rises, demand for the commodity A. Rises B. Falls…

A: So accordingly the positive income elasticity are the normal goods as relatively with the rise in…

Q: What happens when there are very few substitute goods? (a) Demand would tend to be price inelastic…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: If a 10 percent decrease in the price of a good leads to a 20 percent increase in the quantity…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: Q2. At a given market price of a good a consumer buys 120 units. When price falls by 50 per cent he…

A: Price elasticity of demand is a measure of the degree of responsiveness of changes in demand caused…

Q: The price elasticity of supply of good X is.

A: A good or service's responsiveness to supply after a change in its market price is measured by its…

Q: Match each of the terms to their definition or description.…

A: Cross-price elasticity: - Cross-price elasticity of demand measures the responsiveness of change in…

Q: What is the formula for the price elasticity of demand? The percentage change in the A) quantity…

A: Price elasticity can be divided into: 1. Perfectly elastic demand: When a small change in price…

Q: The total amount spent on a service with an inelastic demand will if supply decreases. decrease.…

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Q: The price elasticity of demand increases with the length of the period considered because…

A: Elasticity of demand measures the responsiveness of quantity demanded of a good or a service to a…

Q: when the income elasticity of demand is greater than unity, the commodity is  a. A non-related…

A: Income elasticity of demand shows how much the quantity demanded of a good changes when the income…

Q: Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity…

A: Demand: The term demand refers to the quantity of a commodity for which the consumer is willing to…

Q: If cream cheese and bagel are good compliments for consumers, then it is likely that: their…

A: The percentage change(increase/decrease) in quantity demanded of a particular product owing to a…

Q: If a 10 percent increase in price causes a 3 percent decrease in quantity demanded, Which of the…

A: Concept: The elasticity of demand refers to the change in the quantity demanded due to a change in…

Q: Zulaikha wanted to buy 10 kg of rice and Ker Xin wanted to buy RM20 worth of rice. Find the price…

A: Price elasticity of demand can be calculated as follows: Price elasticity of demand=% change in…

Q: elasticty of demand for this good.

A: ‘Price elasticity’ of a good is the response in the demand(DD) of the good as the price(P) of the…

Q: If the own price elasticity of demand for a good is 4.0. then a 10 per cent increase in price…

A: The own-price elasticity of demand refers to the percentage change in the quantity when there is a…

Q: Supply is said to be inelastic when the quantity supplied changes * more than the change in its…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: As the number of available substitutes increases, the price elasticity of demand for a good: a.…

A: As the number of available substitutes of a good increases, the price elasticity of demand for a…

Q: The income elasticity of demand with a value between zero and one indicates that the demand is…

A: Income elasticity of demand depicts how much consumer responds with the change in his income

Q: Price elasticity of supply of a good is 9 .A producer sells 900 units of this good at 8 per unit.…

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Q: The income elasticity of demand is a. positive for a normal good and negative for an inferior good.…

A: The economics as a study is based upon the idea that the economies, and societies around the world…

Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.