Which of the following conditions would result in a higher price elasticity of demand? a longer period of time all of these the good makes up a large portion of one's budget more substitutes

Q: Explain the type of price and income elasticity for a normal good, inferior good and luxury good.

A: Income elasticity of a demand is the change in the quantity demanded for a commodity due to change…

Q: If the price elasticity of demand is 0.6, then a 10 percent increase in the price of the good will…

A: The price elasticity of (Ed) demand measures the extent of sensitiveness of quantity (Qd) demanded…

Q: If the absolute value of the price elasticity of demand for a good is 7, then a 5 percent decrease…

A: price elasticity of demand for a goods is the change in its quantity demanded due to change in its…

Q: Elasticity of demand depends on a number of factors, including whether the product in question is a…

A: The price elasticity of demand measures the percentage change in the quantity demanded of the good…

Q: The price elasticity of demand increases with the length of the period considered because O A)…

A: Elasticity of demand measures the responsiveness of quantity demanded of a good, to a given change…

Q: A price elasticity of demand equal to 5 means

A: The formula for elasticity is given by: ep = [dq/dp] x [p/q]   If ep > 1 then elastic demand If…

Q: If the price elasticity of demand for Good A is -0.15 and the price increases from $4 to $6.…

A: Given: Price elasticity of demand for Good A = -0.15 Increase in price from $4 to $6

Q: If the price elasticity of demand is 0.15, and the price is doubled, this will lead to a a. 30…

A:

Q: A $2.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 6…

A:

Q: Tim makes twice as much money as his brother Andrew, but they equally like to go to baseball games.…

A:

Q: A good that has a lot of substitutes, that is a necessity and is relatively inexpensive will most…

A: A necessary good is a good for which a change in price will not significantly affect its quantity…

Q: a good tends to have a small price elasticity of demand if

A: In economics, goods are the final products that are consumed by the people.

Q: If the elasticity of demand for Good A is −3, a 33 percent decrease in quantity demanded of Good A…

A: Price elasticity of demand shows the responsiveness of quantity demanded of a good due to the change…

Q: The price elasticity of demand for a popular sporting event is 2. If the price of a ticket to this…

A: The relationship between the proportionate change in demand and the proportionate change in price is…

Q: Cross-price elasticity of demand

A: The elasticity of demand measures the % change in quantity demanded to % change in price. The…

Q: A change in price of $10 from initial price of $15 leads to a change in quantity demanded of 100…

A: The economics as a study is based upon the idea that the resources which the economies have tend to…

Q: If the price elasticity of demand for a product is 5, and prices decrease 10 percent then demand…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: Suppose a 6 percent increase in income results in a 2 percent decrease in the quantity demanded of a…

A: Income elasticity of demand = %change in quantity demanded / % change in price

Q: When the value of income elasticity of demand is greater than zero, the good is called normal good.…

A: Normal goods are those goods which has positive relationship between the quantity demanded of good…

Q: Comment on the Elasticity of demand for a good having high number of substitutes

A: The concept of elasticity of demand for any good is a measure and indicator which shows how the…

Q: If the price elasticity of demand, ed, is equal to 2, then a 20 percent increase in quantity…

A: Price elasticity of demand measures the degree of responsiveness in quantity demanded of a commodity…

Q: When price elasticity of demand for normal goods is calculated, the

A: To find : What will be value when price elasticity of demand is calculated.

Q: If the price of one good decreasing causes the price of another good to increase, then: a. demand is…

A: Substitute good – a good in which can substitute for another good (competitor’sgood). An increase…

Q: Explain five categories of price elasticity of demand with the aid of appropriate diagrams.

A: Price Elasticity of demand  Price elasticity of demand measures the change in Consumption Quantity…

Q: An increase in the number of substitutes to Good E will lead to an increase in the income elasticity…

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

Q: Which of the following is most likely to have a low price elasticity of demand? A good that is very…

A: Answer: The demand for goods that are expansive, luxurious, and goods having many substitutes will…

Q: If a 10 percent decrease in the price of a good leads to a 20 percent increase in the quantity…

A: Price elasticity of demand measures the responsiveness of quantity demanded for a good due to…

Q: Q2. At a given market price of a good a consumer buys 120 units. When price falls by 50 per cent he…

A: Price elasticity of demand is a measure of the degree of responsiveness of changes in demand caused…

Q: A good has a price elasticity of demand of 2.5 this tells us that; A. none of the above…

A: (C)

Q: The price elasticity of supply of good X is.

A: A good or service's responsiveness to supply after a change in its market price is measured by its…

Q: When the price of good Y increases from $2 to $3, the quantity demanded for good X decreases from 20…

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

Q: Which of the following could be the price elasticity of demand for a good for which an increase in…

A: Price elasticity of demand for a good is defined as the percentage change in demand due to 1…

Q: What is the formula for the price elasticity of demand? The percentage change in the A) quantity…

A: Price elasticity can be divided into: 1. Perfectly elastic demand: When a small change in price…

Q: The price elasticity of demand increases with the length of the period considered because…

A: Elasticity of demand measures the responsiveness of quantity demanded of a good or a service to a…

Q: when the income elasticity of demand is greater than unity, the commodity is  a. A non-related…

A: Income elasticity of demand shows how much the quantity demanded of a good changes when the income…

Q: If cream cheese and bagel are good compliments for consumers, then it is likely that: their…

A: The percentage change(increase/decrease) in quantity demanded of a particular product owing to a…

Q: If a 10 percent increase in price causes a 3 percent decrease in quantity demanded, Which of the…

A: Concept: The elasticity of demand refers to the change in the quantity demanded due to a change in…

Q: A consumer buys 40 units of a good at a price of Rs. 3 per unit. When price rises to Rs. 4 per unit…

A: Price elasticity of demand: It refers to the goods and services whose demand changes due to the…

Q: If the own price elasticity of demand for a good is 4.0. then a 10 per cent increase in price…

A: The own-price elasticity of demand refers to the percentage change in the quantity when there is a…

Q: Suppose a 10 cent change in price induces a 1000 unit change in willingness to consume. At a price…

A: Price elasticity of demand: It is the measurement of the percentage change in the quantity demanded…

Q: Price elasticity of supply of a good is 9 .A producer sells 900 units of this good at 8 per unit.…

A:

Q: If a decrease in income by 10 percent leads to a decrease in quantity demanded by 2 percent, the…

A: We have given that  If the income decreased by 10% then the quantity demanded decreased by 2%

Q: All normal goods have A. income elasticities of demand greater than 1.0. B. price elasticities of…

A: Income elasticity of demand measures the responsiveness of change in demand due to change in income…