Answered: What will be the value of price…

What will be the value of price elasticity if the demand for a product is relatively elastic? a. Equal to one b. Equal to zero c. Greater than one d. Less than one

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section5.1: The Elasticity Of Demand

Problem 1QQ: Define the price elasticity of demand. Explain the relationship between total revenue and the price...

See similar textbooks

Related questions

Q: a. Why do suppliers want to create more inelastic demand relationships in the products that they…

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

Q: 1. For the market demand schedule in table below, find the price elasticity of demand for a movement…

A: For movement from one point to other we use arch elasticity

Q: What is the state of elasticity of demand if it has demand curve that is parallel to horizontal axis…

A: The elasticity of demand is the measurement in which change in quantity demanded is measured with…

Q: 1.Suppose the price of gasoline rises from $1.89 to 2.17 per gallon, and in response the quantity…

A: price elasticity refers that the change in income due to change in price so we can solve all parts…

Q: 18) If the price elasticity of demand is 0.6, then a 10 percent increase in the price of the good…

A: Price elasticity of demand is the ratio of the percentage change in quantity demanded of a product…

Q: 40 15 35 30 30 45 25 60 20 75 15 90 10 105 120 135 11. Using the schedule above, calculate the…

A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…

Q: If the price elasticity of supply is 2, and a price decrease led to a 16% decrease in quantity…

A: The price elasticity of supply can be representing as follows:

Q: suppose the price is elasticity of demand for a good is -0.6. If it's price rises by 10% then by…

A: # Price elasticity of demand measures the degree of change in quantity demanded due to change in…

Q: Managers of movie theaters know that the price elasticity of demand for movie tickets is 1.5. If…

A: The firm wants to increase sales which means the quantity demanded for a product increases by 6%.…

Q: If a firm wanted to know whether the demand for its product was elastic, unit-elastic, or inelastic,…

A: Elasticity and revenue are related. If a good has low elasticity, an increase in price increases…

Q: 1.Suppose the price of gasoline rises from $1.89 to 2.17 per gallon, and in response the quantity…

A: price elasticity refers that change in demand due to change in price so here we can find the answer…

Q: 3. Which good would you expect to have a more elastic demand? Why? Choose on a. Water or diamonds b.…

A: Definition: elasticity of demand alludes to how delicate demand for a decent is contrasted with…

Q: The price elasticity of demand is 0.8 the percentage change in quantity is 8 what is the percentage…

A: Elaticity of demand = %Change in quantity/%Change in price Given elaticity = 0.8 % Change in…

Q: 3. (20%) Elasticity (related to Total Revenue): (Please show your steps & decision rules) The demand…

Q: Find elasticity of demand if price rise by 40% and quantity falls by 10% (b) Is the demand elastic…

A: We are given that:- Rise in price = 40% Fall in quantity = 10% We need to calculate the elasticity…

Q: 20.Price Elasticity of Demand of a good is (-)1. At a given price, the consumer buys 60 units of the…

A: As we know that when price decreases demand increases so by using the elasticity formula we can find…

Q: George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he…

A: The economies around the world have various entities, which are in the form of households,…

Q: Find the attached file.

A: In the market, a producer needs to perform various experiments or analyses to determine consumer…

Q: Calculate the price elasticity of demand, if there is a decline in quantity from 55 to 45 a week and…

A: Elasticity of demand is used to measure the responsiveness of change in the quantity demanded of a…

Q: Given that price rise by 3% and the quantity demanded falls by 10% Find the value of elasticity of…

A: elasticity of demand show the change in demand due to change in price , so here we calculate the…

Q: The demand for wooden chairs can be modeled as D(p) = -0.01p + 4.25 million chairs where p is the…

Q: 5)Which of the following elasticity coefficients represents a price elastic demand? * a)0.87 b)0…

A: The price of a commodity plays an important role in its demand. If the price increases, then the…

Q: If price elasticity of supply is 1.5 and price increases by 3 percent, quantity supplied will…

A: Price elasticity of supply measures the responsiveness of quantity supplied to change in price. The…

Q: Assume the price elasticity of supply for plastic products is 2.5. How much would price have to rise…

A: Products are the Tangible items that are purchased by the consumers for their personal use.

Q: The price elasticity of demand for pencils is estimated to be −2.5. If the price of pensils declines…

Q: Explain the term fairly elasticity of demand

A: Fairly elasticity is one of the type of elasticity and it is when at the point when the rate change…

Q: If an increase in price of a for bag Results from 90 to 120 an increase in quantity supplied of bag…

Q: Suppose that as the price of X falls from $4 to $3 and the quantity of X demanded increases from…

A: Given information: Initial Price: $4 Final Price: $3 Initial Quantity demanded: 1100 Final Quantity…

Q: Danny “Dimes” Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is…

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

Q: a. Calculate the price elasticity of demand for the Yoghurts over this price range. b. Is demand…

A: Revenue is the total income earned by selling the products and services in the market.

Q: Blue berry pharmaceuticals in Bangladesh has decided to increase their yearly spending advertisement…

A: Given information, Initial expenditure on advertisement= 10 million Final expenditure on…

Q: 6) The elasticity of supply for a given good is 0.8; if the percentage increase in the price of said…

A: Given : Elasticity of supply=0.8 Percentage increase in price=25% Thus,the % change in quantity…

Q: Suppose you are given a task for analysis the market elasticity for Sport Bike. You found that when…

A: Price elasticity of demand (PED) is the responsiveness of a percentage change in quantity demanded…

Q: If the consumers' income increase from $200 to $300, the quantity demanded for product X will…

A: Elasticity is defined as a variable's sensitivity to change in some other variable. Most commonly…

Q: Why do suppliers want to create more inelastic demand relationships in the products that they sell?

A: Elasticity is the change in quantity demanded due to a change in price. E = 1 Unitary Elasticity…

Q: ecause of a typhoon in the city, the price of cabbages rose from P60.00 to P80.00, and the quantity…

A: Given P1= 60 P2 = 80 Q1 =150 Q2 =100 Due due typhoon, the price of cabbages increase from 60 to…

Q: The price elasticity of demand for a popular sporting event is 0.4. If the price of a ticket to this…

A: Price elasticity of demand=% change in quantity demanded%change in price0.4=% change in quantity…

Q: Suppose that as the price of X falls from $4 to $3 and the quantity of X demandec increases from…

Q: a Calculate the price elasticity of demand when the price is RM60 and increase to RM 80. b.…

A: Elasticity is the change in the consumer’s demand or supply with the change of prices.

Q: The elasticity of demand is 1.1. Is the demand curve relatively steep or flat? Will a fall in price…

A: Change in total revenue depends on elasticity of demand .

Q: The price goes from $4 to $2. the quanity demanded goes from 800 to 1000. what is elasticty of…

A: Price ELASTICITY of demand refers to the percentage change in quantity demanded due to the…

Q: Calculate the price elasticity of demand for both products using the midpoint method. Comment on…

A: In this question:- Product A Product B Initial price $250 $600 initial quantity 280 50…

Q: 3) Quantity demanded per week 20 Price ($) Quantity supplied per week 20 40 16 4 60 12 80 8 12 100 4…

A: Here we calculate the elasticity of the following terms as per instruction , so the calculation of…

Q: $2.50 $1.50 M 400 500 D Pounds of Chicken (thousands) Between points L and M, the price elasticity…

A: An elastic demand is one in which the change in quantity demanded due to a change in price is large.…

Q: Revenue and elasticity. The price-demand equation for hamburgers at a fast-food restaurant is x +…

A: Here we can use the following equation for calculating total revenue, TR=P×X Here, P is the price of…

Question

What will be the value of price elasticity if the demand for a product is relatively elastic? a. Equal to one b. Equal to zero c. Greater than one d. Less than one

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
A college raises its annual tuition from 23,000 to 24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
Isabella always spends $50 on red roses each month and simply adjusts the quantity she purchases as the price changes. What can you say about Isabella's elasticity of demand for roses?
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
Describe the general appearance of a demand or a supply tune with zero elasticity.
Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?
The president of Tucker Motors says, Lowering the price wont sell a single additional Tucker car. The president believes that the price elasticity of demand is a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic.
From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply from: point J to point K, point L to point M, and point N to point P. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
Define the price elasticity of demand. Explain the relationship between total revenue and the price elasticity of demand.