supply occurs when price elasticity of supply is less than 1, and, than 1. [4.5.1 How Much Quantity Supplied Changes When Price Changes] Inelastic; unit elastic B) Inelastic; elastic Elastic; inelastic D) Unit elastic; elastic supply occurs when price elasticity of supply is greater
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![supply occurs when price elasticity of supply is less than 1, and,
than 1. [4.5.1 How Much Quantity Supplied Changes When Price Changes]
Inelastic; unit elastic
B) Inelastic; elastic
Elastic; inelastic
D) Unit elastic; elastic
supply occurs when price elasticity of supply is greater](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F846571ed-e1f1-4975-98a3-8f28e8f78536%2F378fccef-9965-452c-a7bc-61831577410a%2Fiyiudck_processed.jpeg&w=3840&q=75)
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- A 3 percent decrease in the price of milk causes a 12 percent increase in the quantity demanded of chocolate syrup. What is the cross- price elasticity of demand for chocolate syrup with respect to the price of milk? Instructions: Enter your response as a whole number. If you are entering a negative number, be sure to include a negative sign (-). Cross-price elasticity of demand equals The two goods are (Click to select) because when the cross-price elasticity of demand is positive, the two goods are complements. positive, the two goods are substitutes. negative, the two goods are substitutes. negative, the two goods are complements.Last month, an appliance store sold 82 refrigerators at $779 each. This month, the floor manager has estimated that the store can sell 90 refrigerators if the price is lowered to $739 per unit. Calculate the price elasticity of demand for refrigerators. [4.2.1 Computing the Price Elasticity of Demand A 1.77 B 0.57 Ⓒ0.20 D 1.90Suppose that your demand schedule for DVDs is as follows:Price: 8, 10, 12, 14, 16Demand (income =$10000) : 40, 32, 24, 16, 8Demand (income = $12000): 50, 45, 30, 20, 12a. If your income is $10,000, your price elasticity of demand as the price of DVDs rises from $8 to $10 is
- Suppose that the price of whiskey increases from R100 to R150 a bottle and as a result the quantity demanded decreases from 1 100 bottles to 800 bottles. 5.1.1. Use the ARC (midpoint) formula to calculate the price elasticity of demand forwhiskey. (3) 5.1.2. Based on the calculated elasticity value in 5.1.1, indicate whether the demand in themarket for whiskey is elastic or inelastic. (1) 5.1.3. Based on your answer in 5.1.2, illustrate the elasticity of demand in the market forwhiskey. Clearly indicate the correct percentage changes in price and quantity on theelasticity graph. (4)Q2. (a) The table below reveals the cross-price elasticity of demand for several goods. Cross-price elasticity of demand Goods pairing Air conditioning unit with electricity usage | Coke and Pepsi McDonald's burgers and Burger King burgers | Butter and margarine -0.34 +0.63 +0.82 +1.54 Required: (i) Explain the sign of each of the cross-price elasticity. Describe the implication of the sign on the relationship between both items in the table above. (ii) Compare the absolute values of the cross-price elasticities and explain their magnitudes. Explain why the cross-price elasticity of McDonald's burgers and Burger King burgers is less than the cross-price elasticity of butter and margarine. (iii) Use the information in the table to calculate how a 5% increase in the price of Pepsi affects the quantity of Coke demanded.reases, consumels ce changes of products with only Ul Classroom activity 5.4 V 1. Name seven factors that influence price elasticity of demand. (14) 2.) Identify whether demand for the following will tend to be elastic or inelastic: (10) a) Fresh meat that lasts a few days b) Necessary milk c) White bread that has a substitute d) Cheap candles e) Petrol with no substitute f) Expensive motor cars g) Durable shoes h) A multi-purpose frying pan i) Cigarettes for a smoker i) Demand in the long run
- Price falls from $8.50 to $7.75, and the quantity demanded rises from 900 units to 970 units. What is the approximate coefficient of price elasticity of demand (Ed) between these two prices? 0.64 1.00 1.23 O 1.44 O 0.81The cross price elasticity of demand captures the percent change in the (quantity demanded, price) of one good that results from a percent (quantity demanded, price) of a related good. change in the When the cross price elasticity of demand between two goods is positive, the goods must be (substitutes, complements). When the cross price elasticity of demand between two goods is negative, the goods must be (substitutes, complements).Suppose the cross-price elasticity of demand between DVDs at Amazon.com and DVDs at Rakuten.com is 3.5. Based on this information, predict what happens when Amazon.com lowers its DVD prices by 10 percent. The quantity of DVDs demanded on Amazon.com will decrease by 35 percent. The quantity of DVDs demanded on Amazon.com will increase by 35 percent. The quantity of DVDs demanded on Rakuten.com will decrease by 35 percent. The quantity of DVDs demanded on Rakuten.com will increase by 35 percent.
- 18.) Which of the following price elasticities of demand would be considered inelastic? а.) 3 b.) 2 с.) 1 d.) ½ 19.) Which of the following goods is most likely to have a negative cross price elasticity of demand with ice cream? a.) Waffle cones b.) Water ice с.) Веer d.) Pretzels 20.)Suppose that the price of sticky hands is $2.00 and the price of gumballs is $1.00. What is the relative price of gumballs? а.) 4 b.) ½ c.) 2 d.) 14) Refer to the graph below. Using the midpoint elasticity formula, the value of price elasticity of demand equals: 50 100 Quantity Price (S) 22 10 a) 6.0 b) 2.5 c) 0.27 d) 3.7 e) None of the above.If the cross-price elasticity between ketchup and hamburgers is –1.2, a 4% increase in the price of ketchup will lead to a 4.8%* drop in quantity demanded of ketchup. drop in quantity demanded of hamburgers. increase in quantity demanded of ketchup. Increase in quantity demanded of hamburgers. If the price of pork chops falls from $8 to $6, and this leads to an increase in demand for apple sauce from 100 to 140 jars, what is the cross-price elasticity of apple sauce and pork chops at a pork chop price of $6?* -1.17 2.71 0.42 -0.86 An income elasticity less than zero tells us that the good is:* a normal good. a Giffen good. an inferior good. an inelastic good.
