The quantity demanded of a product rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately O a. 4.0 Q b. 0.16 O c. 2.5 O d. 1.0

The quantity demanded of a product rises from 1000 to 1500 units when the price falls from $1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately O a. 4.0 Q b. 0.16 O c. 2.5 O d. 1.0

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 16SQ

See similar textbooks

Related questions

Q: Suppose the market demand functions for apples an bananas are respectively Qdle = 2500 – 300Papple +…

A: Given Demand function of apple Qdapple=2500-300Papple+200Pbanana ... (1) Papple=5.00 and…

Q: Last year when John graduated and received a 20 percent pay increase, the average number of…

A: In economics, the income elasticity of demand is the responsiveness's of the quantity demanded for a…

Q: goods which has relatively inelastic demand the change in quantity demanded result in Select one:…

A: Inelastic demand occurs when the price of goods change does not much affect the quantity demanded.

Q: * When the price of product "X" is (P1=) $42, Shyanne purchases 20 units of product "X" and when the…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: Interpret elasticity of demand Question For a certain product, the elasticity of demand when the…

A: We are authorized to answer one question at a time, since you have not mentioned which question you…

Q: Refer to the accompanying figure. At P- 4,w does the price elasticity of demand for D1 compare to…

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

Q: An elastic demand is O greater than 1. less than 1. equal to 1. cannot be calculated. QUESTION 2 In…

A: Demand: Desire+ willingness+ability.

Q: 14. 7-5: Income Elasticity *4* When Braxton's income decreased 20 percent (-20%), his demand for…

A: Elasticity of income is defined as type responsiveness of the quantity demand when income…

Q: 9. When the price of BMW car rises from P1= $15,000 to P2- $18,000, one third of the customers…

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

Q: If the price of Moonlight massage oil decreases from $3 to $2.50 and, as a result, total revenue…

A: here we calculate the elasticity of demand by using the total revenue and select the correct option…

Q: Suppose there is a 6 percent increase in the price of good X and a resulting 6 percent decrease in…

A: Given, Rise in price = 6% Fall in quantity = 6%

Q: Suppose, the income of a person increased from R.O 1,000 to 1,250. It resulted in an increase in his…

A: Normal goods demonstrates goods having direct link or association between income and demand. These…

Q: Copy of A shop sells 100 mugs per week at $2 each. When it increases the price to $2.5, the number…

A: Price elasticity (EP) of demand is a measure that determines the elasticity of quantity demanded…

Q: If a 10% increase in the price of pens causes the quantity demanded to decrease from 800 boxes to…

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

Q: Consider the following demand schedule Price per unit (Rs.) Quantity demanded (000) 6 3 15 3 20 When…

A: Price elasticity of demand (PED) is an economic calculation of how adjustments in the price of a…

Q: Provided a demand curve for Beans is as follows O = 4000 - 255P Where Q is the quantity demanded and…

A: Elasticity of demand measures the %change in quantity demanded due to %change in price .

Q: According to the table, using the midpoint method, what is the elasticity of supply from point A to…

A: Price elasticity of supply=Q2-Q1Q2+Q12P2-P1P2+P12…

Q: When a certain brand of dog food sells for $20 per bag, 10,000 units are sold; when the price…

A: Using point elaticity formula since question is silent about the method of calculating the…

Q: According to the table, using the midpoint method, what is the elasticity of supply from point A to…

Q: Suppose, the price of a product decreased from R.O 20 to 17. As a result, the products demand…

A: The price of a product decreased from P1- R.O 20 to P2-17 The products demand increased from Q1- 100…

Q: If the cross-price elasticity between the price of good A and the demand for good B is zero, this…

A: Cross price elasticity measures the responsiveness of quantity demanded of good1 with respect to…

Q: The demand for your product demands on three factors; the price of your good, the price of a related…

A: Given information: Demand is a function of three factors, i.e., price of good, price of a related…

Q: The inverse demand function for Z is given by P(Q)=100-2Q² . The elasticity of demand at the point…

A: ed = -(dQ/dP) * P/Q where, ed is the elasticity of demand dQ/dP is the derivative of Q wrt P

Q: Suppose the elasticity of demand equals -0.5. If a company decreases prices by 10%, quantity…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level.

Q: A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased…

A: Answer: Given: Initial Price = $9 Current Price= $11 Initial quantity =150 current quantity = 100…

Q: If an increase in price from $1 to $2 causes a decrease in quantity demanded from 120 to 100,…

A: Elasticity is used to calculate the relative change in the quantity demanded of the good as compared…

Q: What is the coefficient for an item with a perfectly inelastic demand * O 0.5 O 1 O 100 infinity

A: Price elasticity of demand is simply the change in the quantity demanded due to the change in the…

Q: a. Calculate the income elasticity of demand of this family as their income increases from SR 10,000…

A: Income elasticity is the relationship between the real income and quantity demanded of a consumer.

Q: The elasticity of demand for luxuries tends to be Select one: O a. less than 1. b. greater than 1 C.…

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing…

Q: Based on the data presented below, which one of the following statements is true? Product X Product…

A: Inelastic is an economic term referring to the static quantity of a good or service when its price…

Q: During the Covid-19 pandemic that hits the world, the demand for personal computers and laptops has…

A: Price elasticity of supply tells you how much of quantity supplied changes when price changes.

Q: Which of the calculations below would confirm whether or not the Xbox Series X video game console is…

A: The equilibrium is a condition in the market where two curves that are, demand curve and the supply…

Q: If the price of a DVD decreases by 50 percent, the quantity demanded increases by 75 percent. The…

A: "The price elasticity of demand is a concept of micro-economics and it helps in measuring how much…

Q: When the price elasticity of demand for a good equals: O a. 1, the demand curve is horizontal. O b.…

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

Q: Suppose the demand for a product is given by: Q = 20 - 2P + 3Ps, where P is the price of the product…

A: Cross price elasticity measures the responsiveness of quantity demanded of good 1 to changes in…

Q: For a certain good, when price rises from $100 to $150, quantity demanded falls from 2,000 to making…

A: Answer: Initial price = $100 New price = $150 Initial quantity = 2000 New quantity = 1200…

Q: Suppose that a product p and demand x are related through the price-demand equation 40p + x = 5,…

A: It is given that: 40p + x = 5,000 When p = 10, 40 (10) + x = 5,000 x = 4,600

Q: Price (dollars per unit) 92 91 90 89 88 D 2 3 4 5 6 7 8 Quantity (units per day) The figure shows a…

A: Answer: Given, Point Price Quantity A 91 (P1) 2 (Q1) B 89 (P2) 4 (Q2) The following…

Q: Suppose the price of Twinkies decreases from $1.15 to $0.85 and, as a result, the quantity of…

A: Government uses fiscal policy to increase spending by increasing aggregate demand. This they do by…

Q: Suppose that the elasticity of supply is 1.60 and the price increases by 5%. We will predict a…

A: Here we calculate the quantity supplied by using the given elasticity and other information and…

Q: If an increase in price from $1 to $2 per unit leads to an increase in quantity supplied from 20 to…

A: Elaticity formula = [(Q2-Q1)*P1]/ (P2-P1)/Q1

Q: Last year when John graduated and received a 20 percent pay increase, the average number of…

A: Income elasticity of demand shows that change in demand due to change in income so here by using…

Q: Rafael's Barber Shop knows that a 5 percent decrease in the price of its haircuts results in a 15…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level. It…

Q: The quantity supplied of a product rises from 500 to 1000 units when the price rises from $4 to $5…

A: P1 = $4, Q1 = 500 P2 = $5, Q2 = 1000 Elasticity of supply = [(Q2-Q1)/{(Q2+Q1)/2}] ÷…

Q: At a price of $10 per unit, Gadgets Incorporated is willing to supply 14,000 gadgets, while United…

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

Q: Revenue increases from 10 to 12 and the income elasticity of demand is - 0.5. The quantity demanded…

A: Elasticity is used by firms to determine the prices of their products and to increase/ decrease…

Q: Mr. Shrikant always spends 20% of his income on commodity 'X'. The income elasticity of demand for…

A: Mr Srikanth always spends 20% of his income on commodity x which means that whatever is his income…

Q: Suppose a firm faces an elasticity of demand of -1 at its current price/quantity levels. This firm…

Q: Two linear, downward-sloping demand curves, A and B, intersect each other at point X with positive…

A: The elasticity of demand measures the responsiveness of change in quantity demand to change in the…

Question

The quantity demanded of a product rises from 1000 to 1500 units when the price falls from
$1.50 to $1.00 per unit. The price elasticity of demand for this product is approximately
O a. 4.0
Q b. 0.16
O c. 2.5
O d. 1.0

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

Describe the general appearance of a demand or a supply curve with infinite elasticity.
Using the midpoint formula for calculating the elasticity of supply, if the price of a good rose from $95 to $105, what would be the elasticity of supply if the quantity supplied changed from a. 38 to 42? b. 78 to 82? c. 54 to 66?
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.
From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply from: point J to point K, point L to point M, and point N to point P. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
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 would the gasoline price elasticity of supply mean to UPS or FedEx?
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.
(Categories of Price Elasticity of Demand) For each of the following absolute values of price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. In addition, determine what would happen to total revenue if a firm raised its price in each elasticity range identified. Absolut Value Elasticity Effect of Price Increase a b c d
(Price Elasticity of Supply) Calculate the price elasticity of supply for each of the following combinations of price and quantity supplied. In each case, determine whether supply is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. a. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 400 units. b. Price falls from $2.25 to $1.75; quantity supplied falls from 600 units to 500 units. c. Price falls from $2.25 to $1.75; quantity supplied remains at 600 units. d. Price increases from $1.75 to $2.25, quantity supplied increases from 466.67 units to 600 units.
Describe the general appearance of a demand or a supply tune with zero elasticity.
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industry that could increase Qs almost without limit in response to an increase in the price?