Price elasticity of demand If the price elasticity of demand for a product measures 0.45, then: Select the correct answer A this good has many available substitutes. B) this good must be a non-essential good. C) this good is a high-priced good. D) a decrease in price will increase total revenue. E this good is demand price inelastic.

Price elasticity of demand If the price elasticity of demand for a product measures 0.45, then: Select the correct answer A this good has many available substitutes. B) this good must be a non-essential good. C) this good is a high-priced good. D) a decrease in price will increase total revenue. E this good is demand price inelastic.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 6.1IP

See similar textbooks

Similar questions

If the computed elasticity of the related product is /-0.75/, the good is Select one: a. inferior & elastic b. complement & inelastic c. normal & inelastic d. substitute & elastic
Multiple Choice 5. The cross elasticity of demand for a substitute is ____________.Select one:a.equal to zerob.equal to onec.greater than zerod.less than zero6. Factors that influence the elasticity of demand include all of the following except ____________.Select one: a.time elapsed since a price change b.closeness of substitutes c.the elasticity of supply d.proportion of income spent on the good 7. Which of the following factors would result in a good having an elastic demand?Select one: a.The price of the good is low relative to a consumer's income b.The good is a luxury c.The time between the change in price and consumption of the good is short. d.There are few substitutes for the good8. A 1% increase in the price of good B leads to a 2% decrease in the demand for good A. The cross elasticity of demand is...Select one: a.1/2 b.-2 c.(-1/2) d.2 9. Price elasticity of demand measures...Select one: a.None of the other choices b.How responsive the quantity demanded for a good is to a…
If the income elasticity of demand computed using the endpoint method is .5 what term describes demand for good A? Group of answer choices Normal Inferior Complements Substitutes Elastic Inelastic
The quantity demanded (QD) of a soft drink brand A has decreased. Thiscould be because:i) A’s consumers have had an increase in income.ii) The price of A has increased.iii) A’s advertising is not as effective as in the past.iv) The price of rival brand B has increased.
DEPENDENT VARIABLE Qc R- SQUARE P- VALUE ON F 64 0.8093 0.0001 INDEPENDENTVARIABLE PARAMETER ESTIMATE STANDARD ERROR T-RATIO P-VALUE INTERCEPT 8.20 4.01 2.04 0.0461 PC -3.54 1.64 -2.16 0.0357 M 0.64287 0.19 3.38 0.0014 PA 0.7854 0.38 2.07 0.0439 9. Calculate the price elasticity, cross-price elasticity, and income elasticity of demand for cement. Explain these figures. Q = f( P, M, PR) where Qc = demand for cement/month (in yards) Pc = the price of cement per yard, M = country’s tax revenues per capita, and PR = the price of asphalt per yard.
the market demand for a good at $4 per units is 100 units. the price rises and as result its market demand falls to 75 units. find out the new price if elasticity of demand of that good -1.
Suppose the price elasticity of demand for used cars is 3. What does this mean?
Elasticity Arc Method: Bill's Bikes recently reduced the price of road bikes from $1,050 to $950. As a result, sales of mountain bikes fell from 100 to 60 bikes daily and sales of road bikes, increase from 50 to 150. What is the cross-price elasticity of demand of mountain bikes with respect to the price of road bikes?
Mac-book air sales are 1.6 million units at $1499. Apple raises the price by 10%. sales decrease to 1.28 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..
A pizza restaurant raises the price of their pizza by 20%. As a result, they witness a 10% decrease in the quantity demand of their pizza. What is the price elasticity of demand for this pizza restaurant? Group of answer choices -0.5 -.25 -2 -10
ELASTICITY -What type of elasticity occurs and what is the financial result if: • The elasticity is 0.5 • Sales Price Change is 5.0% • Original Sales Price is $10.00 • Original Sales Qty 100,000. Inelastic -- Loss of $55,000 Inelastic -- Profit of $55,000 Elastic -- Profit of $55,000 Elastic -- Loss of $55,000
Relative Inelasticity: E<1 If the price of coffee (0.3) increases by 10%, how much will unit sales decline? Relative Elasticity: E>1 If the price of airline travel (2.4) increases by 10%, how much will unit sales decline?