Explanation Option a: The percentage change in quantity demanded of airline travel in the long-run is higher than the percentage change in quantity demanded of airline travel in the short-run. Hence, airline travel in the long-run has the higher price elasticity. Option b: A particular television set like S television set has several substitutes. When a good has more substitutes, the price elasticity will be higher. Hence, television S has higher price elasticity. Option c: A car like F is a luxury good and not a necessity good...

13th Edition

ISBN: 9781337617383

Author: Roger A. Arnold

Publisher: Cengage Learning

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Question

Chapter 19, Problem 8QP

To determine

Identify the higher price elasticity of demand.

Expert Solution & Answer

Chapter 19 Solutions

Economics (MindTap Course List)

Ch. 19.1 - On Tuesday, the price and quantity demanded are 7...Ch. 19.1 - What does a price elasticity of demand of 0.39...Ch. 19.1 - Prob. 3ST Ch. 19.1 - Prob. 4ST Ch. 19.2 - Prob. 1ST Ch. 19.2 - Prob. 2ST Ch. 19.4 - Prob. 1ST Ch. 19.4 - Prob. 2ST Ch. 19.4 - Prob. 3ST Ch. 19.4 - Prob. 4ST

Ch. 19 - Prob. 1QP Ch. 19 - For each of the following, identify where demand...Ch. 19 - Prove that price elasticity of demand is not the...Ch. 19 - Prob. 4QP Ch. 19 - Prob. 5QP Ch. 19 - Suppose a straight-line downward-sloping demand...Ch. 19 - Prob. 7QP Ch. 19 - Prob. 8QP Ch. 19 - Prob. 9QP Ch. 19 - Prob. 10QP Ch. 19 - Prob. 11QP Ch. 19 - Prob. 12QP Ch. 19 - Prob. 13QP Ch. 19 - Prob. 14QP Ch. 19 - A college raises its annual tuition from 23,000 to...Ch. 19 - As the price of good X rises from 10 to 12, the...Ch. 19 - The quantity demanded of good X rises from 130 to...Ch. 19 - The quantity supplied of a good rises from 120 to...Ch. 19 - Prob. 5WNG

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Similar questions

Define the price elasticity of supply. Explain why the price elasticity of supply might be different in the long run than in the short run.
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?

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