Question

In: Economics

​2. Elastic, inelastic, and unit-elastic demand

2. Elastic, inelastic, and unit-elastic demand 

The following graph shows the demand for a good 

image.png

For each region on the graph given in the following table, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic. 

image.png

True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve. 

Solutions

Expert Solution

Using the mid-point method, the elasticity of demand is calculated as (91-0.) 1+02 Elasticity of dem and- (R-R) Percentage ch1+02 Elasticity of dem and- (R-R (28-56) 28+56 (50-20) 50+20 -28 30 35 28 35 42 30 -ㄧㄧㄨㄧ =-0.78 Therefore, between Y and Z, t(9-02) Elasticity of dem and- (8-20) 8+20 (140-70) 140 +70 12 70 105 -12 105 14 70 =-1.29 Therefore, between X and Y, the ela


Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic:
For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: (a) Price rises by 10 percent, and the quantity demanded falls by 2 percent   (b) Price falls by 5 percent, and the quantity demanded rises by 4 percent.   (c) Price falls by 6 percent, and the quantity demanded does not change.   (d) Price rises by 2 percent and the quantity demanded falls by 1 percent.
• Is demand for illegal drugs elastic, inelastic, highly elastic, highly inelastic,perfectly elastic, or perfectly inelastic?...
• Is demand for illegal drugs elastic, inelastic, highly elastic, highly inelastic,perfectly elastic, or perfectly inelastic? • What would the shape of that demand curve be (flatter or steeper)? • Prior to completing the Written assignment, you probably have ideas about how we can reduce illegal drug usage. Should we work more on reducing supply or reducing demand? • Why do you think that strategy (supply-side or demand-side) is best?
Define elastic and inelastic demand
Define elastic and inelastic demand
Use the​ price-demand equation to determine whether demand is​ elastic, is​ inelastic, or has unit elasticity...
Use the​ price-demand equation to determine whether demand is​ elastic, is​ inelastic, or has unit elasticity at the indicated values of p. x=f(p)=1500-5p^2; p=10
If the demand for a product is inelastic but the supply is elastic, the ________ will...
If the demand for a product is inelastic but the supply is elastic, the ________ will bear the tax incidence. A) government B) producer C) consumer
The demand for salt is inelastic, and the supply of salt is elastic. The demand for...
The demand for salt is inelastic, and the supply of salt is elastic. The demand for caviar is elastic, and the supply of caviar is inelastic. Suppose that a tax of $1 per pound is levied on the sellers of salt, and a tax of $1 per pound is levied on the buyers of caviar. We would expect that most of the burden of these taxes will fall on . buyers of salt and the buyers of caviar. buyers of...
Is short-run demand for alcohol elastic or inelastic? Explain. Is long-run demand for this elastic or...
Is short-run demand for alcohol elastic or inelastic? Explain. Is long-run demand for this elastic or inelastic? Explain.
For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic.
4. Elastic, inelastic, and unit-elastic demandThe following graph shows the demand for a good.For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic, (approximately) unit elastic, or inelastic.RegionElasticInelasticUnit ElasticBetween Y and ZBetween X and YBetween W and XTrue or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.TrueFalse
For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic (approximately) unit elastic, or inelastic.
For each of the regions listed in the following table, use the midpoint method to identify if the demand for this good is elastic (approximately) unit elastic, or inelastic. True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve. 
• Is the demand curve for your product relatively elastic, inelastic, or unitary elastic? Demonstrate for...
• Is the demand curve for your product relatively elastic, inelastic, or unitary elastic? Demonstrate for your company's product, by how much the quantity demanded will change if you pass on a 10% increase in cost. In other words, show your calculation of the percentage change in the quantity demanded given a 10% change in your price. You must provide calculations showing the percentage change in quantity demanded. • Given your company's and the price elasticity of demand and the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT