Question
don't need to explain, just result. Thank you sm. 2. Calculate the income elasticities of demand for the following: a. Income rises by 80 percent;
don't need to explain, just result. Thank you sm.
2. Calculate the income elasticities of demand for the following: a. Income rises by 80 percent; demand increases by 70 percent. Instructions: Enter your responses rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Income elasticity of demand: ________ b. Income rises from $20,000 to $30,000; demand increases (at a constant price) from 11 to 14. Instructions: Enter your responses rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Income elasticity of demand: ______
5.
Price Quantity Demanded
$1.60 130
1.80 120
2.00 110
2.20 100
2.40 90
2.60 80
Refer to the table shown to answer the question. Between $1.60 and $1.80, demand is:
Multiple Choice
A. unit elastic.
B. elastic.
C. inelastic.
D. perfectly elastic.
10. If consumers won't pay more than 59 cents for a pack of gum and at 59 cents they will buy an almost infinite amount, price elasticity of demand at 59 cents is:
Multiple Choice
A. perfectly inelastic.
B. perfectly elastic.
C. elastic.
D. inelastic.
11. If a $100 drop in the price of a $10,000 car resulted in an increase in the quantity of cars purchased from 100 to 110 and a $100 drop in the price of a $1,000 vacation rental resulted in an increase in the quantity of weekly vacation homes rented from 100 to 110, the price elasticity of demand is:
Multiple Choice
A. the same for both the car and the vacation rental.
B. less for the car.
C. greater for the car.
D. not comparable.
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