v Question Completion Status: QUESTION 1 f the price of a good decreases from $8
ID: 1164483 • Letter: V
Question
v Question Completion Status: QUESTION 1 f the price of a good decreases from $81 to $26 and the amount consumers choose to buy increases from 19 to 23, what is the price elasticity of demand? Do not forget to include the sign QUESTION 2 What does your answer from the previous question tell you about this good? O Demand for this good is inelastic at this point in the demand curve. ?Demand for this good is elastic at this point in the demand curve. O This is a normal good. O This is an inferior good. QUESTION 3 f the price of a good decreases from $21 to forget to include the sign 15 and the amount consumers choo to buy increases from 35 to 82, what is the price elasticity of demand? Do not QUESTION 4 1 p Click Save and Submit to sove and submit. Click Sove All Answers to sove aN answers Save Al Answers Close WindowExplanation / Answer
1.
Price elasticity of demand = % change in quantity demanded / % change in price
Price elasticity of demand = ((23-19)/19)/((26-81)/81)
Price elasticity of demand = -.31
2.
A
Since the price elasticity of demand is less than 1 in absolute terms, it is relatively inelastic.
3.
Price elasticity of demand = % change in quantity demanded / % change in price
Price elasticity of demand = ((82-35)/35)/((15-21)/21)
Price elasticity of demand = -4.7
4.
B
Since the price elasticity of demand is greater than 1 in absolute terms, then it is relatively elastic.
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