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 are the three approaches to measuring GDP? The three approaches are: a)  The production approach, b)  The spending approach and c)  The income approach.

Why concept of Elasticity is important in economics?  Elasticity is very important concept in economics because it affects the decision of individuals as well as of the whole e

Tariff: A tariff is a tax imposed on the purchase of imports. It is generally imposed in order to stimulate more domestic production of the product in question (rather than meeting

factor influencing quantity supplied

a) Describe and derive the equilibrium contract offered to high risk individuals.                                             b) Describe and derive the equilibrium contract offe


Export Entrepreneurship: This need be developed by providing necessary facilities and making export an attractive and profitable business proposition. In this connection, it

Sources of monopoly power: The main sources of monopoly power include the following: (i) Control of the entire supply of a basic input . It only one firm has access to or co

using the tools of an indifference curve and isoquent, highlight on consumption and production in business economics.

The prevention of major swings in economic activity can be handled most easily by the