Question

In: Economics

Please answer All Which of the following would not shift the demand curve of golf balls?...

Please answer All

Which of the following would not shift the demand curve of golf balls?

A. an increase in the price of golf clubs.

B. a decrease in the popularity of golf.

C. an increase in the number of golfers.

D. an expected increase in the price of golf balls.

E. a decrease in the price of golf balls.

Given that the price of a shirt decreased (in 2008) from $35.00 per shirt with 40 thousand shirts demanded and (in 2009) to $25.00 per shirt with 80 thousand shirts demanded. Using the midpoint formula, calculate the price elasticity of demand for shirts.

A. |0.10|

B. |-0.20|

C. |1.0|

D. |-2.0|

E. |-0.05|

Factors that affect a product’s price elasticity of demand are

A. availability of close substitutes.

B. passage of time.

C. necessity versus luxury.

D. definition of the market.

E. All of the above are correct.

For most consumers, a snack food such as potato chips has a price elasticity of demand that is

A. unitary elastic.

B. perfectly inelastic.

C. extremely elastic, almost perfectly elastic.

D. All of the above are correct.

E. None of the above are correct.

When the price of a taco falls by 10%, the quantity of pizza demanded decreases by 5%. The cross elasticity of demand for pizza with respect to the price of a taco demonstrates that tacos and pizza are

A. substitute goods.

B. complementary goods.

C. factors of production.

D. intermediate goods.

E. cannot be determined with the given information.

Solutions

Expert Solution

Answer-1 Which of the following would not shift the demand curve of golf balls? E. ) a decrease in the price of golf balls.

A decrease in the price of golf balls will lead to movement in the demand curve. The factors that are not on the axes leads to a shift in the curve. Price comes on the vertical axes while plotting demand curve. It is the factor which would not shift demand curve.

Answer-2 Given that the price of a shirt decreased (in 2008) from $35.00 per shirt with 40 thousand shirts demanded and (in 2009) to $25.00 per shirt with 80 thousand shirts demanded. Using the midpoint formula, calculate the price elasticity of demand for shirts. D.) |-2.0|

Midpoint method of calculating price elasticity of demand is as follows:

Price elasticity of demand = {(80-40)/[(80+40)/2] } / (25-35)/[(25+35)/2]

= (40/60)/-10/30

= - 2

Answer-3 Factors that affect a product’s price elasticity of demand are E.) All of the above are correct.

Price elasticity of demand is affected by all of the given factor.

Answer-4 For most consumers, a snack food such as potato chips has a price elasticity of demand that is C.) extremely elastic, almost perfectly elastic.

This snack food is a luxury good. Therefore, its demand is extremely elastic, almost perfectly elastic. A change in the price will lead to change in the quantity demanded.

Answer-5 When the price of a taco falls by 10%, the quantity of pizza demanded decreases by 5%. The cross elasticity of demand for pizza with respect to the price of a taco demonstrates that tacos and pizza are A. ) substitute goods.

When the fall in the price of one good leads to fall in the demand for other good, it demonstrates that the goods are substitute.

Rahul Sunny answered 1 year ago

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