compute the following price elasticities of demand, Microeconomics

#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
• The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quantity demanded.
Of the above examples, which are more elastic, and which is the least elastic? Why? Answer the following questions:
• Why is elasticity an important concept for a business?
o Bridge tolls
o Beachfront properties
o Gourmet coffee
o Gasoline
o Cell phones
Now that you are an expert on elasticity’s, what do you think would be the best time of year to raise prices, and why?
What do you think the elasticity’s are in the flower business?
Posted Date: 10/22/2012 11:03:28 AM | Location : United States







Related Discussions:- compute the following price elasticities of demand, Assignment Help, Ask Question on compute the following price elasticities of demand, Get Answer, Expert's Help, compute the following price elasticities of demand Discussions

Write discussion on compute the following price elasticities of demand
Your posts are moderated
Related Questions
MRP Technique- Sectoral Distribution of Targeted Increase in GDP There are two ways of increasing the GDP: (i) Project and accomplish the growth in various sectors through

Monica consumes only goods A and B. Suppose that her marginal uility from consuming good A is equal to 1/Qa, and her marginal utility from consuming good B is 1/Qb. If the price of


how do you calculate opportunity cost

THEORY OF PRODUCTION: Production activities related to goods and services require inputs. Typically, the set of inputs includes labour, capital equipments and raw materials. T

Production with Two Variable Inputs *  There is relationship between productivity and production. *  Long run production K& L are variable. *  Isoquants analyze and compa

Long Waves: Longer-term periods of stagnation or growth in the economy, that can last for a decade or more and reflect broader changes in technology, politics, and international re

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.

Price elasticity of supply: It is the responsiveness of quantity supplied of a commodity to a change in the price of the commodity and measured as percentage change in quantit

Which of the following is a free good? Fresh water, forests in the northwestern United States, the advice of economists, or none of the above?