The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by...   A) 1 percent and quantity supplied rises by 5 percent B) 4 percent and quantity supplied rises by 4 percent C) 8 Percent and quantity supplied remains the same D)10 percent and quantity supplied rises by 2 percent

Q: When the price of commodity B rises by 10%, the total revenue received by firms that sell commodity…

A: Given: Price of the commodity B rises by 10% Total revenue received by firms that sell commodity B…

Q: A perfectly inelastic demand curve or supply curve means... Group of answer choices There is an…

A: Price elasticity refers to percentage change in quantity demanded or supplied with respect to…

Q: The price elasticity of demand measures the: responsiveness of price to a change in quantity…

A: The law of demand refers to the inverse or negative relationship between the quantity demanded of a…

Q: Demand for high-end purses in a town is given as P = 600 – 0.01Q², and supply is given as P = 100 +…

A: Given information Demand function P=600-0.01Q2 Supply function P=100+0.04Q2

Q: For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly…

A: The price elasticity of demand indicates the degree to which the quantity demanded of a good or…

Q: When the income is increases then there is demand. A. Demand curve is shifting to the right B.…

A: The relationship between income and demand could be explained only if we know the nature of the good…

Q: If the price of good x falls and the demand for good x is unit eleastic, then the percentage rise in…

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of an item or…

Q: Which of the following statements are false? (i) The absolute value of the price elasticity of…

A: The measure that depicts the change in quantity being demanded of a good with respect to change in…

Q: Review price elasticity of demand and supply.  Price elasticity describes the sensitivity between…

A: The substitution effect is caused by a rise in the price of a good and service. The income effect is…

Q: If the percent rise in price is larger than the percent decline in quantity, then: the demand for…

A: The price elasticity of demand measures how a change in the price of a product affects the demand…

Q: If the cross-price elasticity of demand for goods X and Y is zero, it would imply that

A: Cross elasticity refers the responsiveness of the change in quantity demanded on commodity due to…

Q: The cross elasticity of demand for good a with respect to good B is -0.5. A 50% change in the price…

A: Cross price elasticity of demand measures the responsiveness of quantity demanded of good 1 with…

Q: True/False DEMAND FOR ONE GOOD ALWAYS RISES WITH THE INCREASE IN INCOME.

A: Demand and income has a relationship and this relationship depends upon which type of good we are…

Q: With respect to each of the following changes, identify whether the demand curve will shift leftward…

A: Demand: The amount of a decent that shoppers are willing and ready to buy at different costs during…

Q: A demand gap occurs when    A. quantity demanded is greater than quantity supplied.   B. when…

A: Meaning of Demand and Supply: The term demand refers to the willingness of an individual to…

Q: Demand is said to be inelastic if Select one: a. buyers respond substantially to changes in the…

A: Elasticity is a term used in economics to describe how the quantity sought or supplied changes in…

Q: When the price of commodity C rises by 10%, the quantity demanded falls by (2) 18%. This is an…

A: Given data , Change in quantity demanded =18% Change in price = 10%

Q: If beer and marijuana had been found to be substitutes, what would a tax placed on beer do?…

A: Two goods are substitutes when the consumption of one can be substituted by another. When a tax is…

Q: Suppose there is a 3 percent increase in the price of good X and a resulting 6 percent decrease in…

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

Q: If a 5 percent change in the price of a good leads to a 10 percent change in the quantity supplied,…

A: Elasticity of supply refers to Percentage change in quantity supplied with respect to Percentage…

Q: e downward-sloping demand curve reflects which of the following? A) The price is positively related…

A: A downward-sloping demand curve means when the Price of goods increases then the demand will…

Q: Demand is elastic when: (a) Price level is high (b) More substitutes are available (c) Income of the…

A: # Elastic demand means that the consumer are highly responsive to any changes in price.

Q: Price elasticity of demand for gasoline is -0.5.  If the price of gasoline rises by 10%   A.…

A: Quantity demanded is the total quantity of products and services that customers demand at a specific…

Q: A product with an inelastic demand means that consumers are relatively insensitive to a change in…

A: Elasticity measures the responsiveness of change in quantity demanded due to change in price. It is…

Q: Perfectly inelastic demand means that consumers: a. are willing to buy any quantity of the good at a…

A: Price elasticity of demand measure the responsiveness in the quantity demanded of a commodity to a…

Q: he cross price elasticity of demand for a good is the percentage change in the quantity demanded in…

A: The cross elasticity of demand refers to the measurement of the responsiveness in the quantity…

Q: I believe the answer to this question is that it would increase by less than 10 percent, but I'm not…

A: When the percentage change in quantity demanded is less than the percentage change in price, the…

Q: Demand for good X is perfectly elastic. Currently, the price of good X is $5 and quantity demanded…

A: Elasticity is the term economists use to define highly responsive supply and demand are to changes…

Q: An increase in the supply of music downloads indicates that more music downloads will be…

A: Here, it is given that the supply of music downloads is increased in the market.

Q: Demand for the desired quantity of a good that is backed by the ability to buy that good is known…

A: The economic law of demand portrays the negative relationship between the desired units demanded of…

Q: The price of good Y decreases by 8% and the quantity of good X sold increases by 4%. What is the…

A: The formula for cross-price elasticity of demand is: Cross-price elasticity of demand = Percentage…

Q: What happens when there are very few substitute goods? (a) Demand would tend to be price inelastic…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Question 8 If a rise in the price of good X results in the amount of money spent on good Y…

A: At the marketplace, two goods are related to each other when a change in the price of one good…

Q: Which of the following statements are true? (i) An increase in the number of available substitutes…

A: Answer: The demand for a good is more elastic when there are many substitutes for the good…

Q: The supply of product X is elastic if the price of X rises by   Multiple Choice   1 percent and…

A: Elasticity of supply measures the responsiveness of quantity supplied to changes in price.

Q: Demand for a product is price inelastic. What effect will a rise in price have on demand and total…

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

Q: Which of the following statements are true? (i) The absolute value of the price elasticity of demand…

A: (i) The absolute value of the price elasticity of demand is greater when substitutes are available.…

Q: The total amount spent on a service with an inelastic demand will if supply decreases. decrease.…

A:

Q: didi's demand for goods X is 7, Dewi's demand for goods X is 6, Dono's demand for goods Y is 6, then…

A: Market demand is the summation of all the individual demand of a product.  didi's demand for goods X…

Q: The supply of product X is perfectly inelastic if the price of X rises by Multiple Choice 4 percent…

A: Perfect inelastic supply means there is inelastic supply irrespective of the change in price. It…

Q: The elasticity of supply of product X is unitary if the price of X rises by   Multiple Choice   5…

A: The unit elasticity means the change in quantity and price is equal. price rise by 8 percent and…

Q: The cross-price elasticity of demand between good X and good Y is -3. Given this information, which…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services.…

Q: The supply of product X is elastic if the price of X rises by 16 Multiple Choice eBook 4 percent and…

A: Answer: option a (4 percent and quantity supplied rises by 6 percent) Explanation: If the percentage…

Q: The price elasticity of demand for a good is calculated as 1.36. From this elasticity co-efficient,…

A: Price Elasticity > 1 means demand for the good is Elastic.  Percentage change in quantity…

Q: The elasticity of demand is used to determine if a change in price results in a shortage or a…

A: In a market, elasticity of demand is considered as an effective tool for  firm because it helps to…

Q: QUESTION 15 The price elasticity of demand is a measure of how much the quantity demanded of a good…

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

Q: Supply is said to be inelastic when the: Choose correct and explain your choice a. percentage…

A: The price elasticity of supply is how price changes affect the quantity supplied. The collection is…

Q: The demand for good X depends on the price of good Y: DX = 4 – pX + pY. The supply for good X is SX…

A: Cross price elasticity measures the percentage change in quantity demanded of good 1 when price of…