Calculate the price elasticity coefficient of demand or supply for each of the following. Identify whether the
Question:
Calculate the price elasticity coefficient of demand or supply for each of the following. Identify whether the response is elastic, inelastic, or unitary elastic.
a. The number of cans demanded of a soft drink increases by 30 percent after its price decreases by 40 percent.
b. The number of available apartments increases by 8 percent following a 6 percent increase in rents.
c. The number of Cobb salads demanded at a restaurant increases from 60 to 80 per week when the price falls from $10.00 to $9.00.
d. At a price of $200, 10,000 gas grills were supplied each month. Since the price increased to $250, 14,000 are supplied each month.
e. The number of carpet cleaning machines rented each weekend falls from 50 to 40 following an increase in the rental charge from $20 to $24.
Step by Step Answer:
Economics Theory And Practice
ISBN: 9781118949733
11th Edition
Authors: Patrick J. Welch, Gerry F. Welch