E) pertecty elastc i s 81 When the percentage change in the quartihy demanded is

Question

E) pertecty elastc i s 81 When the percentage change in the quartihy demanded is ess than the percentage changs n price, then demane 8) unt elasto E) undefined 101 If the price elasticity af demand for razors s 0.32, the demand for razors is A) elastc B) unit elasic. C) inelasic D) perlecty inelastic. E) perfectly elastic. 11) WWhen the percentsge change in te quartty demanded equals the percentage change in price, hen A) inelastic B) unit elastic C) elastic D) imelewsnt E) undeined 12) * the prioe elasicity of demand for opera Sickets in Chicago is 1.0), ten the demand for opera töckets in Chicago is A unit elastic B) elastc Ci perfectly inelastc nelastc El perfectly elasic 13) Suppose a local photographer increases his prices by 8 percent and quanity demanded decreases by the same pezertsge. This set of tacts inakcans tat the demand for his services is A) inelastic B) elastc C) unt elasto D) perlecty elastc El perfectly inelasic 14) If a good has many close subosttutes, then its dermand is most hely B) inelastic C) unit elasic D) perfectly inelsstic E) elasic or inelastic dependng on whether the price of the good is increasing or decreasing 15) One reason why the demand for gascline is inelasic is because A) substtutes for gas abound. B) substiules for gas are hard to find C) gasolne is a luxury iem. people have a long tme to shop around krat robiestat use less gas. E) buses run on diesel fuel raher tan gasoine 16) The longer the time hat has elapsed since tre proe of a good changed, the A) more elastic the demand for that good B) steeper the demand curve. C) less elastc the demand for that good. D) smaler the amount of that good bought El fewer substutes avalable for the good 17) The demand for a necessity generallys L,very elastic elatic

Explanation / Answer

Answer.)

Q9.) A.) Inelastic

Price elasticity of demand = % change in quantity demanded / % change in price

now if

% change in quantity demanded < % change in price

then it simply means that Price elasticity of demand < 1 which means INELASTIC.

Q10.) C.) Inelastic

0 < Price elasticity of demand < 1 is inelastic demand

Q11.) B.) Unit Elastic

Price elasticity of demand = % change in quantity demanded / % change in price

now if

% change in quantity demanded = % change in price

then it simply means that Price elasticity of demand = 1 which means UNIT ELASTIC.

Q12.) A.) Unit Elastic

if the Price elasticity of demand = 1 then it means UNIT ELASTIC.

Q13.) C.) UNIT ELASTIC

Price elasticity of demand = % change in quantity demanded / % change in price

Note we have

% change in quantity demanded = -8

% change in price = 8

Price elasticity of demand = ( -8 / 8 )

absolute elasticity will 1 which means UNIT ELASTIC.

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