If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be: -0.6 greater than -0.6 less than -0.6 neither greater than, less than, nor equal to -0.6

If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be: -0.6 greater than -0.6 less than -0.6 neither greater than, less than, nor equal to -0.6

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 23SQ: If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly...

See similar textbooks

Related questions

Q: What is the price elasticity of demand given P = $4 and Qa = 1100 – P2

A: Quantity can be calculated as follows: Q=1,100-42=1,100-16=1,084

Q: If the price elasticity of demand for a product is equal to 1.5, then a decrease in price of 4…

A: Given: Elasticity = 1.5 Decrease in price = 4%

Q: .a. From the given demand schedule, determine the price elasticity of demand. Price of Pen…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: statements is true or false and explain if the demand for laptops has a price elasticity of -5 and…

A: The percentage change in quantity demanded of a product in response to some percentage change in…

Q: 11. The relationship between price and quantity demanded for a product is given as: Q P= 300- 2000…

A: 11. Given the relationship between price and quantity demanded for a product is given as: P =…

Q: Suppose that the elasticity of demand at a given price level is E(p)=1.5. What does that mean?…

A: The price elasticity of demand measures the proportionate change in the quantity demanded of a good…

Q: Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that…

A: The elasticity of demand shows the responsiveness of quantity demanded due to change in price of the…

Q: Worldwide annual sales of smartphones over a two year period were approximately q = -6p + 3,060…

A: Answer: Given, Annual sales function/demand function: q=-6p+3,060 millionWhere,p=price per phone in…

Q: Suppose that you know that the price elasticity of demand is 1.3. If we increase the price of this…

A: A good's price elasticity of demand is a calculation of how sensitive the quantity demanded is to…

Q: burger platters per month for $7, and the own-price elasticity for this platter has been estimated…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: For each of the following price elasticity of demand coefficients, calculate the percentage change…

A: When talking about price elasticity of demand, it explains the sensitivity of consumer's demand…

Q: What will be the value of price elasticity if the demand for a product is relatively elastic? a.…

A: The elasticity of demand measures the percentage by which the quantity demanded will change when the…

Q: Cross-price elasticity of demand is Multiple Choice negative for substitute goods. unitary for…

A: Cross price elasticity of demand is the ratio of percentage change in quantity demanded one good to…

Q: 1- The value of the price elasticity of demand is equal when the price is 2 = P for the following…

A: Given; Demand function; Qd=9.3-0.5P Price; P=2 Quantity:- Q=9.3-0.5PQ=9.3-0.5(2)Q=9.3-1Q=8.3

Q: Compute for the mid-point elasticity if price increased from 500 to 520 and quantity demanded…

A: Elasticity of demand=(change in quantity/average quantity)/(change in price/average price)Change in…

Q: The price elasticity of demand for chicken is calculated as 1.53. What category of price elasticity…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 1. Consider the following: If the price per unit of good A is P200 quantity purchased is valued at…

A: A demand function mathematically represents the law of demand, which asserts an inverse relationship…

Q: If the price elasticity of demand for gasoline is 1, that means:

A: The concept of elasticity was introduced to economics by Alfred Marshal. It refers to the change in…

Q: Worldwide annual sales of smartphones over a two year period were approximately q = −5p + 3,080…

A: We are going to calculate Elasticity and maximum revenue using Price elasticity to answer this…

Q: For the demand function given, find the elasticity at the given price and state whether the demand…

A: Unit elastic demand is the economic theory that expects an adjustment of product cost causes an…

Q: the current price elasticity of demand for apples is -0.50, then what will be the change of sales…

A: Given Information Price Elasticity of demand = - 0.50Percentage change in Price = 20%Percentage…

Q: Suppose you are told that the own-price elasticity of supply equal 0.5. Which of the following is…

A: Elasticity of supply depicts how much producer responds with the change in price.

Q: If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own…

A: We are going to use concepts such as elastic demand and price elasticity of demand to answer this…

Q: A consumer buys 100 units of a good at a price of 8 per unit if the price elasticity of demand is -2…

Q: For the demand function = 200 − 3? , calculate the arc price elasticity for a change in price from ?…

A: Answer- Need to find- For the demand function = 200 − 3P, calculate the arc price elasticity for a…

Q: 4.3) If the price of a gardenburger decreases from RM7 to RM6, the price elasticity of demand equals…

A: 4.3) If the price of a gardenburger decreases from RM7 to RM6, the price elasticity of demand equals…

Q: How would you expect the elasticity of demand for each of the following products to compare with the…

A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…

Q: alculate the price elasticity of demand for both economy and premium seats using the mid-point…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: If the price elasticity of demand for a product is 0.5, then a price cut from $3.00 to $2.70 will 15…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: Do you think a tutoring business sells a relatively elastic or inelastic product/service? Mention…

A: Elasticity is a term used in economics to describe how a good or service's total quantity demanded…

Q: A price elasticity of -1.5 means that we expect (approximately) the percentage change in quantity…

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing…

Q: If the price elasticity of demand for a product is equal to 0.5 then a decrease in price of 10…

A: The price elasticity of demand is the ratio of the percentage change in quantity demanded to the…

Q: The price elasticity of demand for math textbooks is -0.2. What percentage price change would have…

A: Formula: Price elasticity of demand = Percentage change in quantity demanded / Percentage change in…

Q: If you know that your product has a close substitute, you will definitely want to know the…

A: Cross elasticity of demand measures the responsiveness of change in demand due to change in the…

Q: If the price of product X increases from $10 to $12, the quantity demanded for gasoline (X) will…

A: a. PEDX=%∆Qd%∆P =dQQdPPx100 =82-10010012-1010x100 =-182 =-9

Q: In an attempt to increase revenues and profits, a firm is considering a 4 percent increase in price…

A: Elasticity refers to the responsiveness of one variable to changes in another variable, given that…

Q: Suppose that the elasticity of demand at a given price level is E(p)-D1.5. What does that mean?…

A: Some products' prices have been determined to be highly inelastic by economists. That is to say,…

Q: What can you tell about the price elasticity of demand in the case below? The new cannabis business…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Calculate the numerical value of cross-price elasticity, exy, in each of the following situations.…

A: Cross price elasticity of demand measures the responsiveness in quantity demanded of a commodity to…

Q: Refer to Table 3. What is the price elasticity of demand for Jolt? Refer to Table 3. What is The…

A: We have given a table Year Price of Jolt ($/ can) Price of Coke ($/ can) Income Level (in $)…

Q: Worldwide annual sales of smartphones over a two year period were approximately q = -5p + 3,040…

A: The price elasticity of demand shows the responsiveness of change in the quantity demand when the…

Q: Given that the price elasticity of demand for biltong is estimated to be 1.89. Identify any six…

A: Six factors that can impact the elasticity of demand for biltong: Nature of the commodity Close…

Q: Q.17 What would be the coefficient of price-elasticity of demand when the percentage increase in the…

A: # Price elasticity of demand measures the responsiveness of change in demand with respect to the…

Q: What is the price elasticity of demand given P=12 and Q=1300−P2.

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: 4.1) If the price of a gardenburger increases from RM8 to RM10, the price elasticity of demand…

A: Since you have posted a question with multiple parts, we will solve only the first part. To get…

Q: If the price elasticity of demand is equal to 2, a 1 percent increase in price will cause the…

A: Price Elasticity of demand is the degree of responsiveness of demand to the change in price. Price…

Question

3 If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be:

		-0.6
		greater than -0.6
		less than -0.6
		neither greater than, less than, nor equal to -0.6

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
If the short-term own price elasticity for a product is estimated to be -0.6, then long-term own price elasticity is expected to be?
the demand function for a commodity is Q-500-5P. find out point arc elasticity for fall in price from rs 25 to rs 20.
I thought for part (a) the Q will equal to 166. and for part (b) isnt the price elasticity equal to -2.04
The price elasticity of demand for residential energy in the U.S. is estimated by some researchers to be -0.24. Approximately, what percentage change in the price of residential energy induces an increase of 1% in its consumption? 4.17% increase 8.23% increase 24% increase 4.17% decrease 24 % decrease
Worldwide annual sales of smartphones over a two year period were approximately q=-4p+3020 million phones at a selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ (c) The demand was going down by about _____% per 1% increase in the price at that price level. (d) use your formula for E to determine the selling price that would have resulted in the largest annual revenue. $____ What would’ve been the resulting annual revenue? $____ billion
John, a restaurant consulting firm estimates that in Accra a 10% reduction in the price of roasted groundnut will increase kelewele demand by 20%. The restaurant further estimates that a 10% reduction in price of roasted plantain will decrease kelewele by 15%. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted groundnut. (a) What is the implied cross price elasticity of kelewele with respect to changes in the price of roasted plantain.
Worldwide annual sales on smartphones over a two year period were approximately q=-4p+3,020 million phones at a selling price of $p per phone. (a)obtain a formula for the price elasticity of demanding e. E=_____ (b) in one of the years the actual selling price was $305 per phone. What was the corresponding price elasticity of demand? E=_____ What would’ve been the resulting annual Revenue? $_____billion
2c statements is true or false and explain if the demand for laptops has a price elasticity of -5 and an income elasticity of 2.5, then a price cut of 1% is necessary to offset a 1% income drop
Worldwide annual sales of smartphones over two year period were approximately q=-5p+3040 million phones at a selling price of $p per phone. (a) Obtain a formula for the price elasticity of demand E. E=_______ (b) in one of the years the actual selling price was $375 per phone. What was the corresponding price elasticity of demand? E=_______ The demand was going down by about _____% per 1% increase in price at that price level. (c) Use your formula for E to determine the selling price that would’ve resulted in the largest annual revenue. $_______ What would’ve been the resulting annual revenue? (Round your answer to two decimal places) $_____billion
Price (dollars) 9. 7 10 14 18 22 26 30 Quantity (units per year) In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $8 to $7 is equal to A) 0.62. B) 0.40. C) 2.50. D) 1.00.
Worldwide annual sales on smart phones over a two year period were approximately q=-5p+3090 million phones at the selling price of $p per phone. (a) obtain a formula for the price elasticity of demand E. E=______ (b) in one of the years the actual selling price was $355 per phone. What was the corresponding price elasticity of demand? E=______ The demand is going (up/down) by about _____% per 1% increase in that price level.