In Brisbane there is a small population of musicians who play the harp. The quantity demanded for a specific student harp, used by music students, when priced at $11,500 is 20 harps. However, the quantity demanded for the same student harp when priced at $17,500 is only 8 harps in Brisbane. 1. All individual student harp players will always have the same willingness to pay for a harp. 2. If the harp differs in price and quantity demanded (ceteris paribus), then a demand schedule can be constructed. 3. A new music university opens in Brisbane where students enrol to study and learn the harp. These additional new players need to be included in the market demand for student harps. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.

In Brisbane there is a small population of musicians who play the harp. The quantity demanded for a specific student harp, used by music students, when priced at $11,500 is 20 harps. However, the quantity demanded for the same student harp when priced at $17,500 is only 8 harps in Brisbane. 1. All individual student harp players will always have the same willingness to pay for a harp. 2. If the harp differs in price and quantity demanded (ceteris paribus), then a demand schedule can be constructed. 3. A new music university opens in Brisbane where students enrol to study and learn the harp. These additional new players need to be included in the market demand for student harps. Which of the above statements are true: Only 1 is true. Only 2 is true. Both 1 and 2 are true. Both 2 and 3 are true. All three are true.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 2QP: For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly...

See similar textbooks

Similar questions

For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: a. Price rises by 10 percent, and quantity demanded falls by 2 percent. b. Price falls by 5 percent, and quantity demanded rises by 4 percent. c. Price falls by 6 percent, and quantity demanded does not change. d. Price rises by 2 percent, and quantity demanded falls by 1 percent.
Price per pound ($) Quantity Demanded (pound) 8 1 6 2 4 3 Refer to Table 6.9, which shows Reggie's demand for apples at various prices. Suppose there are 100 people in an economy and each has the same demand for apples as Reggie. At a price of $6, the total quantity of apples demanded in the market is _____ pounds. Group of answer choices 800 600 200 300 500
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D1, Lorena’s income is $50,000 per year and movies cost $9 each. In scenario D2, Lorena’s income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3, Lorena’s income goes up to $70,000 per year, while movies cost $11. a. Using the data under D1 and D2, calculate the cross-elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross-elasticity of demand.) Is the cross-elasticity the same at all three prices? Are movies and golf substitute goods, complementary goods, or…
The demand for all cars is likely to be the demand for Honda Civics.
Suppose that new type of mining equipment replaces low-income miners, but require highly skilled technicians to operate and maintain. The new equipment will shift the demand curve for low-income workers to the ______ while shifting the demand curve for high-income workers to the _____.
Consider the market for lattes. The government is considering imposing a new regulation that would require the temperature of each latte to be checked to ensure it is not hot enough to burn the drinker. This would slow down the production process for lattes, raising the cost to make them. What would happen to the equilibrium price and quantity of lattes if this regulation were imposed? Group of answer choices Both the equilibrium price and quantity would increase. Both the equilibrium price and quantity would decrease. The equilibrium price would increase, and the equilibrium quantity would decrease. The equilibrium price would decrease, and the equilibrium quantity would increase.
Suppose a producer sells 1,000 units of a product at $5 per unit one year, 2,000 units at $8 the next year, and 3,000 units at $10 the third year. Is this evidence that the law of demand is violated? Explain
Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena’s income and the cost of other types of entertainment—in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the following table show how many rounds of golf per year Lorena will demand at each price under three different scenarios. In scenario D1 , Lorena’s income is $50,000 per year and movies cost $9 each. In scenario D2 , Lorena’s income is also $50,000 per year, but the price of seeing a movie rises to $11. And in scenario D3 , Lorena’s income goes up to $70,000 per year, while movies cost $11. a. Using the data under D1 and D2 , calculate the cross elasticity of Lorena’s demand for golf at all three prices. (To do this, apply the midpoints approach to the cross elasticity ofdemand.) Is the cross elasticity the same at all three prices? Are movies and golf substitute goods, complementary…
Be fast Suppose there are three (3) consumers in a market for bottles of perfume; Mutumbu, Jasanu and Julius The individual demand for perfumes for each of these consumers is given as 10 bottles for Mutumbu, 15 bottles for Jasanu and 25 bottles for Julius at $60 per bottle for perfume. Thus, the market demand for perfumes if the market price is $60 is: (a)40 bottles (b)60 bottles (c)80 bottles (d) None of the above
Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.5. If a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 30%, it should increase the price by . If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be   than the effect 5 years from now. Studies also find that teenagers have a higher price elasticity of demand than do adults. Which of the following statements are consistent with this result? Check all that apply. It is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes. Adults are more likely to be addicted to cigarettes. Teenagers do not have as much income as adults, so they are more price sensitive.
In 2022, pet food prices have risen sharply but quantity demanded has not fallen much.  It makes sense that the demand for pet food would be ___________ since __________. Thus, higher prices would lead to ______ revenue for pet food producers. Inelastic; pet food is more of a luxury good; more Inelastic; people consider their pets to be necessities; more Elastic; pet food takes a small percentage of most consumer’s income; less Unit elastic; pet food is more of a luxury item; less
YorMagnets and YorMugs are two companies selling merchandise to tourists visiting the city of York. YorMagnets sells fridge magnets and YorMugs sells mugs with images of popular attractions. Assume that YorMagnets is the only company producing magnets for York and YorMugs is the only company producing local mugs. The daily demand for magnets (until 2019) is given by       D1 = 50/9 – 200/9 P1 + 100/9 P2, where P1 is the price of magnets and P2 is the price of mugs. The daily demand for mugs (until 2019) is given by       D2 = 500/9 – 200/9 P2 + 100/9 P1. The marginal cost of producing magnets is £0.50 per magnet and the marginal cost of producing mugs is £2.00 per mug. Both firms simultaneously choose their quantities. You may assume that both firms aim to maximise profits. Are magnets and mugs (perfect) complements or (perfect) substitutes? Explain your answer. How would you characterise this market? Explain your answer. Calculate the equilibrium price for both products and quantity…