1) Price elasticities are calculated for four commodities, and the numbers are:
ID: 1098359 • Letter: 1
Question
1) Price elasticities are calculated for four commodities, and the numbers are: 0.009; 1.0; 3.3; and 4.1.Which indicates the most responsive situationA) 0.009 B) 1.0 C) 3.3 D) 4.1
Please Explain why the answer is D.
2)The less sensitive people are to a change in price, the
A) smaller a change in price must be to induce a certain change in quantity demanded. B) greater the price elasticity of demand. C) smaller the price elasticity of demand. D) closer the price elasticity of demand is to one
Please explain why the answer is C.
3) If demand is unit elastic, then A) a ten percent increase in price leads to a one percent decrease in quantity demanded. B) the change in quantity demanded equals the change in price. C) a two percent increase in price leads to a two percent decrease in quantity demanded. D) an increase in price of any amount leads to quantity demanded falling to zero.
Please Explain why the answer C is correct.
1) Price elasticities are calculated for four commodities, and the numbers are: 0.009; 1.0; 3.3; and 4.1.Which indicates the most responsive situation
A) 0.009 B) 1.0 C) 3.3 D) 4.1
Please Explain why the answer is D.
2)The less sensitive people are to a change in price, the
A) smaller a change in price must be to induce a certain change in quantity demanded. B) greater the price elasticity of demand. C) smaller the price elasticity of demand. D) closer the price elasticity of demand is to one
Please explain why the answer is C.
3) If demand is unit elastic, then A) a ten percent increase in price leads to a one percent decrease in quantity demanded. B) the change in quantity demanded equals the change in price. C) a two percent increase in price leads to a two percent decrease in quantity demanded. D) an increase in price of any amount leads to quantity demanded falling to zero.
Please Explain why the answer C is correct.
A) 0.009 B) 1.0 C) 3.3 D) 4.1 A) smaller a change in price must be to induce a certain change in quantity demanded. B) greater the price elasticity of demand. C) smaller the price elasticity of demand. 3) If demand is unit elastic, then A) a ten percent increase in price leads to a one percent decrease in quantity demanded. B) the change in quantity demanded equals the change in price. C) a two percent increase in price leads to a two percent decrease in quantity demanded. D) an increase in price of any amount leads to quantity demanded falling to zero.
Please Explain why the answer C is correct.
Explanation / Answer
1)Its the ratio of supply to demand ,it shows that if demand changes by 1 supply changes by 4.1 so its the highest
2)The sensitivity of people to change in price is the change in demand,since change in demand is less, so is the price eleasticity as demand /supply=price elasticity
3)Since demand and supply are inversely related so percent increase in supply would be percent decrease in demand
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