Answered: Suppose, the price elasticity of demand…

Suppose, the price elasticity of demand for sugar is 0.65. What type of elasticity sugar is having? a. Cross elastic b. Relatively elastic c. Relatively inelastic d. Unitary elastic

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Related questions

Q: A firm selling ready meals discovers that the price elasticity of its product is -2.5 and the income…

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: If a 10% price rise causes a 20% decrease in the amount demanded, the price elasticity of demand is…

A: Introduction Given Information Price elasticity of demand= 5.0 % change in Price = 10 % change…

Q: statements is true or false and explain if the demand for laptops has a price elasticity of -5 and…

A: The percentage change in quantity demanded of a product in response to some percentage change in…

Q: Suppose a university raises its tuition from $3,000 to $3,500. As a result student enrollment drops…

A: Price elasticity of demand = %change in Q / %change in P Using midpoint formula: PE.D. = {(Q2 - Q1)…

Q: The price elasticity of demand is smaller: A. the fewer substitutes for the product. B. the more…

A: Ans. The Price elasticity of demand is the magnitude of change in quantity demanded to change in the…

Q: Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a…

A: Given information: The price of widgets rises from $5 to $7 and consumption of widgets falls from 25…

Q: True/False Coefficient of elasticity of demand is negative. It means that the two goods are…

A: # To term two goods to be as complementary or substitute, we need to look at their cross price…

Q: When Ms. Khadija increased the price of her products, she lost a huge number of customers. She also…

A: The elasticity measures the percentage change in the value of one variable when the other variable…

Q: Own-price elasticity of apple demand (ɛp) -2.5 Elasticity of pear supply (es) Own-price elasticity…

A: The price elasticity of demand is the ratio of percentage change in quantity demanded to the…

Q: 2. Zulaikha and Ker Xin went to a shop to buy nice. Zulaikha wanted to buy 10kg of rice and Ker Xin…

A: Price elasticity of demand refers to the responsiveness of the quantity demand due to change in the…

Q: The price elasticity of demand for magazines is 0.4. The price elasticity of demand for newspapers…

A: Cross Price elasticity of demand refers to the responsiveness of quantity demanded of a good to the…

Q: Find the attached file.

A: In the market, a producer needs to perform various experiments or analyses to determine consumer…

Q: the current price elasticity of demand for apples is -0.50, then what will be the change of sales…

A: Given Information Price Elasticity of demand = - 0.50Percentage change in Price = 20%Percentage…

Q: what is the demand elasticity?

A: The elasticity of demand is a metric that calculates how demand changes in response to changes in a…

Q: Suppose the price of rice increases from $0.80 to $1.00 a gram and the quantity demanded decreases…

A: The price elasticity of demand shows the responsiveness of demand with the change in price. The…

Q: Price elasticity for Product A is -2.5 Price elasticity for Product B is -1.5 Which product is…

A: Price Elasticity of demand is the percentage change in the quantity due to percentage change in the…

Q: The slope of a linear demand curve is constant, but the elasticity is not. At points with a low…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: A Discuss the importance of price elasticity of demand, income elasticity of demand and cross price…

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

Q: The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of…

A: Price elasticity of demand is a device in economics that measures the reaction of amount demanded to…

Q: At a price of $27.50 to play 18 holes of local golf courses, 1,200 consumers pay to play a game of…

A: Initial price (P) = $27.50 Initial Demand (Q) = 1200 Final Price (P1) = $32.50 Final Demand (Q1) =…

Q: Figure: The Demand for Shirts) Use Figure: The Demand for Shirts. The price elasticity of demand for…

A: At Point A Price = 60 and Quantity = 0 At Point B Price = 50 and Quantity = 100

Q: Calculate the arc price elasticity as the price decrease from 40 to 30$ and interpret the result.…

A: Arc elasticity of demand can be calculated by following formula. Ed = % change in Qd/ % change in…

Q: Read each statement below and indicate if the price elasticity of demand for the product is most…

A: Price elasticity of demand differ according to the types of good.

Q: alculate the price elasticity of demand for both economy and premium seats using the mid-point…

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

Q: If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity…

A: Initial Price, P = $1 Final Price, P1 = $2 Initial quantity, Q = 100 Final quantity, Q1 = 80

Q: This problem has been solved! See the answer Over time, technological advance increases consumers'…

A: When income elasticity is positive, that is greater than 0, then increase in income quantity…

Q: The short-run price elasticity of demand for gasoline is 0.5, and the long-run price elasticity of…

A: Price elasticity of demand is a measurement of the change in consumption of a product in relation to…

Q: Under what demand conditions will there be no rise in price? a) zero elasticity b) infinite…

A: Elasticity is defined as a concept where the economists study the responsiveness of the quantity…

Q: Suppose price of a shirt increases from $10 to 11$ and quantity demanded for that shirt decreases…

A: The quantity demanded of the good refers to the amount of the good the consumers are willing and…

Q: If the demand toward a specific product hardly changes with a small change in price, the demand is…

A: Demand is a monetary guideline alluding to a consumer's desire to purchase goods and services and…

Q: A product falls in price by 8% and total expenditure remains unchanged. What type of price…

A: The degree of responsiveness of the amount demanded of the good in reaction to changes in the…

Q: Suppose the price elasticity of demand for gasoline is 0.7 and the price elasticity of demand for…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price of a…

Q: Suppose you are given a task for analysis the market elasticity for Sport Bike. You found that when…

A: Price elasticity of demand (PED) is the responsiveness of a percentage change in quantity demanded…

Q: The demand for shirts produced by a Canadian manufacturer has been estim to be P = 30 - Q/200. a.…

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

Q: Suppose the price elasticity of demand for orange juice equals -0.8. If there is a 10% increase…

A: Introduction: The elasticity of demand can be calculated by dividing the percentage change in…

Q: Discuss how the demand elasticity of a product changes? Give examples.

A: Elasticity of demand measures the percentage change in quantity demanded due to percentage change in…

Q: Suppose that the price of peanuts rises from $2.5 to $3 per bushel and that, as a result, the total…

A: Price elasticity of demand refers to the responsiveness of change in the quantity demand due to…

Q: If the price elasticity is greater than 1 , demand is a. inelastic. b. elastic. c. perfectly…

A: Demand for the product is sensitive to an increase in price. And when elasticity is zero then demand…

Q: Suppose that vacationers have the following demand for airline tickets from Toronto to Montreal: 10.…

A: Given : Price of the ticket rises from $200 to $250.

Q: If apples have an own price elasticity of -1.2, we know the demand is elastic. Can you explain why?

A: Elasticity of demand is the magnitude of change in the quantity demanded for a good due to change in…

Q: If the price elasticity of supply of a good is 0.8 and if the price rise by 20% then calculate the…

A: # The formula for elasticity of supply is GIVEN as:- = % Change in quantity supplied / % Change in…

Q: Q: What is the price elasticity of demand (indude negative sign if negative)? Please round your…

Q: Question 1.1 Please calculate the price Elasticity of demand between points E and D. 1.2 Please…

A: Point E= (2200,10) Points D= (2400,90)

Q: Calculate the price elasticity of demand using the Midpoint Method. (b) Is the demand for this good…

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: ii. The demand for autos is likely to be: A. less elastic than the demand for Honda Accords. B. more…

A: The elasticity of demand represents the degree of responsiveness of quantity demanded and price. It…

Q: 1. If a 10% increase in price leads to a 40% decrease in quantity demanded, what is the value of…

A: A measurement of the change in the level of consumption of a product with respect to a change in the…

Q: explain the following Elasticity, inelastic, perfectly elastic inelastic, and unit elastic

A: Elasticity tells us the percentage change in quantity demanded due to the percentage change in…

Question

Suppose, the price elasticity of demand for sugar is 0.65. What type of elasticity sugar is having? a. Cross elastic b. Relatively elastic c. Relatively inelastic d. Unitary elastic

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
What does a price elasticity of demand of 0.39 mean?
The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
What is the formula for line cross-price elasticity of demand?
From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
A college raises its annual tuition from 23,000 to 24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?