The demand for rosebushes in a market is as follows: Price (per rosebush) Quantity Demanded (rosebushes per
Question:
The demand for rosebushes in a market is as follows:
Price (per rosebush) Quantity Demanded (rosebushes per week)
$10 .................................. 230
$11 .................................. 150
$12 .................................. 90
$13 .................................. 40
a. Is this a straight-line demand curve? How do you know?
b. Calculate the price elasticity of demand for roses for a price increase from $10 to $11. Is demand elastic or inelastic for this price change?
c. Calculate the price elasticity of demand for roses for a price increase from $12 to $13. Is demand elastic or inelastic for this price change?
Step by Step Answer:
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman