Factors that make this demand less elastic, Microeconomics

155_Quantity.png

Question 1: The price of the good X rises from $1.30 to $1.40. Calculate the price elasticity of demand by using the mid-point method.

Question 2: How do you explain the answer in question 1 in plain English to someone who is not an economics student?

Question 3: What are the factors that can make this demand less elastic?

Question 4: Calculate the price and quantity effects of this increase in price of X.

Question 5: Is it possible to raise more revenue by increasing the price of good X from $1.3/unit to $1.4/unit? Explain your answer by using the price and quantity effects.

Question 6: Assume that the price of good X is $1.3/unit. An increase in the price of good Y from $3 to $5 shifts the demand curve for the good X rightwards. With the price of good X constant at $1.3/unit, the quantity demanded for X increases from 7000units to 8000units. Calculate the cross price elasticity of demand between X and Y. What type of relationship do you find between goods X and Y?

Question 7: Assume that the price of good X is $1.3/unit. An increase in the price of good Z from $3 to $5 shifts the demand curve for good X leftwards. With the price of good X constant at $1.3/unit, the quantity demanded for good X declines from 7000units to 5000units. Calculate the cross price elasticity of demand between X and Z. What type of relationship do you find between goods X and Z?

Question 8: Assume that the price of good X is $1.3/unit. An increase in the income of the consumer from $2000 to $2500 shifts the demand curve for good X shifts rightwards. With the price of good X constant at $1.3/unit, the quantity demanded for good.

Posted Date: 3/16/2013 6:26:31 AM | Location : United States







Related Discussions:- Factors that make this demand less elastic, Assignment Help, Ask Question on Factors that make this demand less elastic, Get Answer, Expert's Help, Factors that make this demand less elastic Discussions

Write discussion on Factors that make this demand less elastic
Your posts are moderated
Related Questions

what is the demand when expanding healthcare infrastructure?

I want to address Inflation in Pakistan but it itself is a wide topic plz suggest me how to address Inflation to right a research article?????

Non-existence of Objective Probability Distributions :   Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact

Carmen, the Queen of Electra, is concerned over what she believes is an excessive consumption of electricity.  Consequently, she proposes an excise tax on electricity consumption w

How does the BLS classify people who are "not in the labor force," and what people are often in this category?  If an individual surveyed (that is, who is age 16 or over and no

A portion of the demand schedule for wax candles (per case) is shown below. Px $50 $30 $10 Qx 500 600 700 What is the demand curve (straight line) that corresponds to the schedu

Gay Lussac''s law of gaseous volumes: While gases react with each other they always do so in volumes that bears a simple ratio to one and another or to the volumes of the products

How base case NPV analysis is applied in financial risk management

What is meant by non Price Competition? In which market structure does it exist?  None price competition is an effort put by the supplier to earn extra profit without enhancing