)The price elasticity of demand is calculated as the absolute value of the 8) A)
ID: 1128401 • Letter: #
Question
)The price elasticity of demand is calculated as the absolute value of the 8) A) percentage change in price divided by the percentage change change in price divided by the change in quantity demanded. Dl parentage change in quantity demanded divided by the percentage change in price. change in quantity demanded divided by the change in price. 9Florida State University has just lowered the price of its season football tickets from $350.00 to $300.00. As a result, there was an increase in the number of season tickets purchased from 43,000 to 7,000. The price elasticity of demand for season tickets equals A) 1.71. 0.58. C) 1.58. D) 0.71. 10 0 10 20 30 40 50 60 Quantity (units) 20) In the above figure, at which point on the demand curve is the price elasticity of demand equal to 10) 17 A) a. B) b. C) c. D) It is impossible to say at which point the elasticity equals one ,H) The demand for is more elastic than the demand for , motor vehicles; food C) chewing gum; cars B) all soft beverages; lemonade D) gasoline: professional services 12) Which of the following goods would have the smallest elasticity of demand? A) an education at Harvard Law School sold to recent college graduates 12) a bottle of Bayer Aspirin sold to someone without a headache insulin sold to diabetics D) Exxon brand premium unleaded gasolineExplanation / Answer
Ans)
8)
C) percentage change in quantity demanded divided by the percentage change in price
Price elasticity=% change in quantity demanded/% change in price
% change in quantity demanded=(47000-43000)/43000 * 100=9.30
9)
b) 0.58
10.
C) c
The elasticity of a linear demand curve is unit elastic at its mid-point.
11.
A. motor vehicles; food
The demand for luxuries such as automobiles is more elastic than the demand for necessities such as food.
Quantity midpoint=(Q1+Q2)/2 % change in quantity Price midpoint=(P1+P2)/2 % change in price Ep=% change in quantity demanded/% change in income Q1 Q2 (Q2-Q1)/midpoint*100 P1 P2 (P2-P1)/mid-point*100 43000 47000 45000 8.888888889 350 300 325 -15.38461538 -0.577777778Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.