Hey, I have a question on part D of question 5. I saw the answers that are available but the answer and explanation didn’t make sense. I got inelastic as my answer but Bartley said the answer is elastic. This is the modern principles of microeconomics 4th edition and the chapter is 5, elasticity and it’s applications

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 29CTQ: A city has build a bridge over a river and it decides to charge a toll to everyone who crosses. For...
icon
Related questions
Question
Hey, I have a question on part D of question 5. I saw the answers that are available but the answer and explanation didn’t make sense. I got inelastic as my answer but Bartley said the answer is elastic. This is the modern principles of microeconomics 4th edition and the chapter is 5, elasticity and it’s applications
c. The supply curve for plastic if a very large
share of oil output was used to make plastic.
d. The supply curve for nurses after several
years of increasing wages in nursing. no
5. Let's work out a few examples to get a sense
927 of what elasticity of demand means in prac-
tice. Remember that in all of these cases, we're
moving along a fixed demand curve-so think
of supply increasing or decreasing, while the
Van demand curve is staying in the same place.
gaiv
a. If the elasticity of demand for college text-
books is -0.1 and the price of textbooks
increases by 20%, how much will the quantity
egnede demanded change, and in what direction?
b. In your answer to part a, was your answer in
to
percentages or in total number of textbooks?
c. If the elasticity of demand for spring break
1 packages to Cancun is -5, and if you notice
that this year in Cancun the quantity of
packages demanded increased by 10%, then
what happened to the price of Cancun vaca-
tion packages?
d. In your college town, real estate developers
are building thousands of new student-
friendly apartments close to campus. If you
ashwant to pay the lowest rent possible, should
you hope that demand for apartments is
relatively elastic or relatively inelastic?
Transcribed Image Text:c. The supply curve for plastic if a very large share of oil output was used to make plastic. d. The supply curve for nurses after several years of increasing wages in nursing. no 5. Let's work out a few examples to get a sense 927 of what elasticity of demand means in prac- tice. Remember that in all of these cases, we're moving along a fixed demand curve-so think of supply increasing or decreasing, while the Van demand curve is staying in the same place. gaiv a. If the elasticity of demand for college text- books is -0.1 and the price of textbooks increases by 20%, how much will the quantity egnede demanded change, and in what direction? b. In your answer to part a, was your answer in to percentages or in total number of textbooks? c. If the elasticity of demand for spring break 1 packages to Cancun is -5, and if you notice that this year in Cancun the quantity of packages demanded increased by 10%, then what happened to the price of Cancun vaca- tion packages? d. In your college town, real estate developers are building thousands of new student- friendly apartments close to campus. If you ashwant to pay the lowest rent possible, should you hope that demand for apartments is relatively elastic or relatively inelastic?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Advertising
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning