1). College Textbooks wants to increase the quantity of textbooks that it sells
ID: 1134462 • Letter: 1
Question
1). College Textbooks wants to increase the quantity of textbooks that it sells by 3 percent. The price elasticity of demand for textbooks sold by College Textbooks is 0.6. What is the percentage price cut that will achieve the firm's objective?
2).The elasticity of supply of roses is 1.8. In the market for roses, ________________.
A. 10 percent increase in the price increases the quantity of roses supplied by 18 percent
B. the supply of roses will double if the price rises by 36 percent
C. the price will rise by 18 percent if rose growers increase the quantity supplied by 10 percent
D. if the price doubles, rose growers will increase the supply of roses by 36 percent
The table gives some data on the demand for food.
Calculate the income elasticity of demand for food when the price of food is $50 a unit.
When the price of food is $50 a unit, the income elasticity of demand for food is what???
3).Explanation / Answer
1. Price elasticity of demand = percentage change in quantity demanded divided by percentage change in price.
So, percentage change in price = percentage change in quantity demanded divided by price elasticity of demand = 3%/0.6 = 5%
Thus, the percentage price cut that will achieve the firm's objective is 5%.
2. A. 10 percent increase in the price increases the quantity of roses supplied by 18 percent
Elasticity of supply = percentage change in quantity supplied divided by percentage change in price
So, if percentage increase in price is 10% and percentage increase in quantity of roses is 18%, it would give elasticity to be 1.8
3. No table is given
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.