The table below shows the percentage change in quantity demanded of sending regular mail, ofsending parcels, and of home broadband service in Australia from a one-percent increase ineach specified price (holding all other prices constant):Change inprice of:Sending regularmailEffect on quantity of:Sending regular Sending parcels Home broadbandmail-1.5Sending parcels 0Home broadband +0.050-1-0.7+0.01-0.11-0.5a) For which services is quantity demanded price elastic? Or price inelastic?b) Which services are substitutes and which are complements?c) How would an increase in the price of sending regular mail affect total revenue to AustraliaPost from that service? How would an increase in the price of home broadband affect totalrevenue to suppliers of broadband?

Price Elasticity is a proportion of how unequivocally purchasers respond to changes in cost. Your…

The table below shows the percentage change in quantity demanded of sending regular mail, of ending parcels, and of home broadband service in Australia from a one-percent increase in ach specified price (holding all other prices constant): Change in price of: Effect on quantity of: Sending regular Sending parcels Home broadband +0.01 mail Sending regular -1.5 mail Sending parcels 0 Home broadband +0.05 0 -1 -0.7 -0.11 -0.5 ) For which services is quantity demanded price elastic? Or price inelastic? Which services are substitutes and which are complements? ) How would an increase in the price of sending regular mail affect total revenue to Australia ost from that service? How would an increase in the price of home broadband affect total suppliers of broadband

The table below shows the percentage change in quantity demanded of sending regular mail, of ending parcels, and of home broadband service in Australia from a one-percent increase in ach specified price (holding all other prices constant): Change in price of: Effect on quantity of: Sending regular Sending parcels Home broadband +0.01 mail Sending regular -1.5 mail Sending parcels 0 Home broadband +0.05 0 -1 -0.7 -0.11 -0.5 ) For which services is quantity demanded price elastic? Or price inelastic? Which services are substitutes and which are complements? ) How would an increase in the price of sending regular mail affect total revenue to Australia ost from that service? How would an increase in the price of home broadband affect total suppliers of broadband

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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