Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change? Estimated Elasticity Category Short Run Long Run Air travel (business) 0.4 1.2 Air travel (vacation) 1.1 2.7 Beef 0.6 N.A Cheese 0.3 N.A Electricity 0.1 1.7 Fresh tomatoes 4.6 N.A Gasoline 0.2 0.5 Hospital services 0.1 0.7 Intercity bus service 0.6 2.2 Physician services 0.1 0.6 Private education 1.1 1.9 Restaurant meals 2.3 N.A Tires 0.9 1.2 Table 19-2.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 2

Question

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Answer 6

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Answer 7

Chapter 19, Problem 2P

To determine

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. if an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?

Estimated Elasticity

Category Short Run Long Run

Air travel (business) 0.4 1.2

Air travel (vacation) 1.1 2.7

Beef 0.6 N.A

Cheese 0.3 N.A

Electricity 0.1 1.7

Fresh tomatoes 4.6 N.A

Gasoline 0.2 0.5

Hospital services 0.1 0.7

Intercity bus service 0.6 2.2

Physician services 0.1 0.6

Private education 1.1 1.9

Restaurant meals 2.3 N.A

Tires 0.9 1.2

Table 19-2.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 19 - Calculate price elasticity of demand and explain...Ch. 19 - Prob. 19.2LO Ch. 19 - Prob. 19.3LO Ch. 19 - Prob. aFCT Ch. 19 - Prob. bFCT Ch. 19 - Prob. cFCT Ch. 19 - Prob. 1CTQ Ch. 19 - Prob. 2CTQ Ch. 19 - Prob. 1FCT Ch. 19 - Prob. 2FCT

Videos

Want to see the full answer?

Chapter 19 Solutions

	Estimated Elasticity
Category	Short Run	Long Run
Air travel (business)	0.4	1.2
Air travel (vacation)	1.1	2.7
Beef	0.6	N.A
Cheese	0.3	N.A
Electricity	0.1	1.7
Fresh tomatoes	4.6	N.A
Gasoline	0.2	0.5
Hospital services	0.1	0.7
Intercity bus service	0.6	2.2
Physician services	0.1	0.6
Private education	1.1	1.9
Restaurant meals	2.3	N.A
Tires	0.9	1.2