Please only 10 min left ! 1. You have just finished your research to find that c

Question

Please only 10 min left !

1. You have just finished your research to find that coal has a price elasticity of demand of -0.55. You conclude coal demand is price______ and that as price increases 1%, demand will _____ by 0.55%.

3.

Which of the following best illustrates the Oil market shift in the following graph

A. Saudi Arabia increases production and country demand increases

B. Oil emissions decrease and oil demand decreases

C. OPEC cuts production while global demand remains constant

2.  Looking at our example of kWh of Electricity what is the Income Elasticity of demand (IEd) if income changes from $20,000 to $40,000? Is it elastic or inelastic?

A. IEd = 1.08, elastic

B. IEd = 1.47, elastic

C. IEd = 1.29, elastic

D. IEd=0.82 , inelastic

A. elastic, increase

B. elastic, decrease

C. inelastic, increase

D. inelastic, decrease

Explanation / Answer

1. price negative, decrease by 0.55%

2. Elastic, increase. This is because electricity is a normal good, and a rise in income leads to a rise in the demand for electricity.

3

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.