Is the demand elastic-unit elastic or inelastic

Assignment Help Business Economics

Reference no: EM131000040

1. If the price of a good increases from $20 to $25 and the quantity demanded of a good decreases from 100 to 90, what is the elasticity of demand? Is the demand elastic, unit elastic, or inelastic? Use the midpoint method. Round to the nearest hundredth.

2. In the market for beer, the elasticity of demand is – 0.8 and the elasticity of supply is + 2.4. Suppose the supply of beer increases by 4%. What is the effect on price?

3. If the elasticity of demand is -1.5 and the percent change in price is -10%, what is the percent change in quantity demanded?

Reference no: EM131000040

Questions Cloud

Explain the three properties of the indifference curves : A consumer has income of $500. chips costs $2 , and burger costs $6. Draw his budget constraint (put burger on the horizontal axis). What is the slope of her budget constraint? Draw Consumer’s indifference curves for chips and burger if you love chip..

Contrast the economic and social roles : Contrast the economic and social roles of people who labor under slavery, feudalism and capitalism and explain how ideology legitimated those roles.

Economic and social critique of capitalism : Present Karl Marx’s economic and social critique of capitalism. Provide empirical examples to illuminate the depth and pervasive of those critiques in contemporary American culture.

What rotation period will provide an earth-like gravity : Consider a cylindrical space station of 640-m diameter as it rotates about its axis. Astronauts walk on the inside surface of the space station. What rotation period will provide an Earth-like gravity?

Is the demand elastic-unit elastic or inelastic : If the price of a good increases from $20 to $25 and the quantity demanded of a good decreases from 100 to 90, what is the elasticity of demand? Is the demand elastic, unit elastic, or inelastic? Use the midpoint method. Round to the nearest hundredt..

What is the expected pay off and variance of the pay off : Five of ten people earn $0, four earn $100, and one loses $100. What is the expected pay off and variance of the pay off? There is a 50 percent chance of making $0, a 40 percent chance of making $100, and a 10 percent chance of losing $100. Calculate..

Assume that the demand for a product : Assume that the demand for a product X is heavily influenced by the price of another product Y (Py), and the income of consumers (I). The cross-price elasticity of X with respect to Y is exy = 1.25, and the income elasticity is eI = 2. Suppose now Py..

Does an officer have a need to detail the reasons for arrest : Does an officer have a need to detail the reasons for the arrest? Is a search warrant required at arrest? Where does that requirement come from

How would classical theorists prevent crime : How would classical theorists prevent crime? What are some problems with the theory of the classical school? After your research, which theory do you tend to side with and why

User Account

All Pages