Demand is said to be inelastic when

Assignment Help Business Economics
Reference no: EM131076498

Demand is said to be inelastic when

A) a given percentage change in price will result in a less than proportionate percentage change in the quantity demanded.

B) demand exhibits zero responsiveness to price changes.

C) small price increases will lead to zero quantity demanded.

D) a given percentage change in price will result in a greater than proportionate percentage change in the quantity demanded.

Reference no: EM131076498

Questions Cloud

Problem regarding the expected return on the portfolio : You own a portfolio that has $3,100 invested in Stock A and $4,100 invested in Stock B. If the expected returns on these stocks are 9 percent and 12 percent, respectively, what is the expected return on the portfolio?
What can we see happening with the health of our nation : What about health trends? What can we see happening with the health of our nation? Is obesity still rising? Are people exercising more?
Simple payback period method : (a) What minimum savings in Year-4 are needed to make Alternative-I an acceptable project using Simple Payback Period Method?
Two goods-consumer goods and capital goods : Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the ec..
Demand is said to be inelastic when : Demand is said to be inelastic when
Offshore wind turbine reliability­ based design : The article "On Assessing the Accuracy of Offshore Wind Turbine Reliability­Based Design Loads from the Environmental Contour Method" (Intl. J. of Offshore and Polar Engr., 2005: 132-140) proposes the Weibull distribution with α = 1.817 and ß = .8..
Two-year insurance policy on the first day of business : The company paid $12,500 in salaries. Owners invested $13,000 in the business and $13,000 was borrowed on a five-year note. The company paid $3,700 in interest that was the amount owed for the year, and paid $7,700 for a two-year insurance policy ..
Explain two extreme demand and supply conditions : Recently, the Obama administration proposed a $1.00 per unit (pack) excise tax on cigarettes (which would be imposed legally or statutorily on cigarettes sellers). Using (separate) competitive supply and demand diagrams of the cigarettes market caref..

Reviews

Write a Review

Business Economics Questions & Answers

  Budgeted amount be allocated between ad radio advertising

Top Toys is planning a new radio and TV advertising campaign. A radio commercial costs $300 and TV commercial costs $2000. A total budget of $ is allocated. For TV, the first commercial will reach 4,500 people and each addition one will reach 3,000. ..

  Building a new training center on this land

The airline is considering building a new training center on this land.

  Explain how does the income approach to measuring gdp

Explain how does the income approach to measuring GDP differ from the expenditure approach. Explain the meaning of value added and its importance in the income approach.

  What is the price elasticity of labor supply

Suppose a wage increase from $19 to $21 an hour increases the number of job applicants from 50 to 64. What is the price elasticity of labor supply?

  What is value of perfect information about state of your leg

You're a sprinter, and in practice today you fell and hurt your leg. An x-ray suggests that it's broken with probability 0.2. Your problem is whether you should participate in next week's tournament. What is the value of perfect information about the..

  Convenience stores total revenue from sales

Suppose your local espresso bar makes the following offer: People who supply their own half-litre carton of milk can buy a cup of cappuccino for only $1.50 instead of the usual $2.50. As a result of this offer, the quantity of cappuccino sold goes up..

  Model when the production function-improvement in technology

Consider Solow's model when the production function is Y = 1000K0.3 L0.7 . The population growth rate is 2%, ? = 0.1 is the depreciation rate and s = 0.25 is the savings rate. Suppose this economy was in its steady state when unexpectedly Total Facto..

  The law of demand states that other things equal

The law of demand states that other things equal

  Omitting an important explanatory variable

Which of the following can cause the usual OLS t statistics to be invalid (that is, not to have t distributions under H0)? Heteroskedasticity. A sample correlation coefficient of .95 between two independent variables that are in the model. Omitting a..

  Large current account deficits have to finance

In general, large current account deficits have to finance by:

  Illustrate the interaction between different forces

Explain how the six external forces could combine/integrate together to have more complex effects on changes in the workplace. For example, technological changes could accelerate reorganization of work. Give some real examples to illustrate the inter..

  Purchases in a competitive health insurance market

Jim currently pays premium $P for his health insurance, which he purchases in a competitive health insurance market, and covers 80% of all his healthcare costs (i.e. 20% coinsurance rate; no deductible or catastrophic cap). If he were to instead purc..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd