Save Homework: Homework 4 Score: 0 of 2 pts Concept: Estimated Price Elasticity

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Save Homework: Homework 4 Score: 0 of 2 pts Concept: Estimated Price Elasticity Suppose the demand for a Czech novel translated into English is perfectly inelastic. Assume the initial price of the translated novel is $28.00 and the quantity 9 of 15 (9 complete) HW Score: 53.33%, 16 of 30 pts E Question Hep demanded is 463 copies per year If the price of the translated novel increases by $2 00, then the quantity demanded will be 463 copies per year Next, suppose the demand for a mystery novel by Stephen King is infinitely elastic. In this example, assume the initial price of the novel is $26.00 and the quantity demanded is 91 thousand copies per year If the price of the mystory novel increases by $1.00, then the quantity demanded will be copies per year Enter your answer in the answer box and then click Check Answer All parts showing Clear All

Explanation / Answer

In perfectly elastic demand, a small rise in price results in fall in demand to zero, while a small fall in price causes increase in demand to infinity.

Hence increase in price of book, will lead to 0 quantity demanded.

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