QUESTION 4 If people are less responsive to a price change then the O a. demand for that good is said to be unit elastic. b. demand for that good is said to be inelastic. c. demand for that good is said to be elastic. O d. demand for that good is said to be perfectly elastic. QUESTION 5 Figure 10 Price 9 8 5+ 4 3 2+ 1 Demand 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 Quantity Refer to Figure. Using the midpoint method, the price elasticity of demand between point A and point B is O a. 2.0 and the demand is elastic. O b.3.0 and the demand is elastic. O. 0.33 and the demand is inelastic. d. 0.5 and the demand is inelastic.

QUESTION 4 If people are less responsive to a price change then the O a. demand for that good is said to be unit elastic. b. demand for that good is said to be inelastic. c. demand for that good is said to be elastic. O d. demand for that good is said to be perfectly elastic. QUESTION 5 Figure 10 Price 9 8 5+ 4 3 2+ 1 Demand 1 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 Quantity Refer to Figure. Using the midpoint method, the price elasticity of demand between point A and point B is O a. 2.0 and the demand is elastic. O b.3.0 and the demand is elastic. O. 0.33 and the demand is inelastic. d. 0.5 and the demand is inelastic.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: The price of coffee rose sharply last month, while the quantity sold remained the same. Five people...

See similar textbooks

Similar questions

Would you expect supply to play a more significant role in determining the price of a basic necessity like food or a luxury like perfume? Explain. Hint: Think about how the price elasticity of demand will differ between necessities and luxuries.
Why is the demand curve with constant unitary elasticity concave?
If demand is elastic, will shifts in supply have a larger effect on equilibrium quantity or on price?
If supply is elastic, will shifts in demand have a larger effect on equilibrium quantity or on price?
What does a downward-sloping demand curve mean about how buyers in a market will react to a higher price?
The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same?
If demand is inelastic, will shifts in supply have a larger effect on equilibrium price or on quantity?
What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens lo the measured elasticity? How would you explain that?
Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?
Why is the supply curve with constant unitary elasticity a straight line?
The equation for a demand curve is P=2/Q. What is the elasticity of demand as price falls from 5 to 4? What is the elasticity of demand as the price falls from 9 to 8? Would you expect these answers to be the same?