If the price elasticity of demand for bubble gum is -1, the elasticity is classified as:...

If the price elasticity of demand for bubble gum is -1, the elasticity is classified as:

Group of answer choices

Unitary

Inelastic

Elastic

Solutions

Expert Solution

The price elasticity of demand is

elastic when the value is greater than 1

inelastic when the value is less than 1

unitary when the value is equal to 1

so, it is unitary as the negative sin does not matter

option(A)

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

1.) the price elasticity of demand for margarine is -1.3 and the income elasticity of demand...

1.) the price elasticity of demand for margarine is -1.3 and the income elasticity of demand for margarine is -0.2. a. Based on these figures, is the demand for margarine elastic or inelastic? How can you tell? b. If the price of margarine falls by 5%, by what percentage will the quantity of margarine demanded change? Will it rise or fall? c. If the price of margarine falls by 5%, by what percentage will the total revenue from sales of...

Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in...

Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in the following scenarios a. Consider the market for coffee. Suppose the price rises from $4 to $6 and quantity demanded falls from 120 to 80. What is price elasticity of demand? Is coffee elastic or inelastic? b. John’s income rises from $20,000 to $22,000 and the quantity of hamburger he buys each week falls from 2 pounds to 1 pound. What his income elasticity? Is hamburger...

The price elasticity of the demand for gasoline is .02. The price elasticity of demand for...

The price elasticity of the demand for gasoline is .02. The price elasticity of demand for gasoline at Joe’s service station is 1.2. Explain what might account for the difference in elasticities.

The price elasticity of demand for product A is 2.32. The price elasticity of demand for...

The price elasticity of demand for product A is 2.32. The price elasticity of demand for product Z is 0.12. This difference could be due to the fact that A. there are many good substitutes for product A and few substitutes for product Z. B. there are many good substitutes for product Z and few substitutes for product A. C. product A is a necessity and product Z is a luxury. D. product Z is a necessity and product A...

1.The price elasticity of demand for a liver transplant is perfectly inelastic. The price elasticity of...

1.The price elasticity of demand for a liver transplant is perfectly inelastic. The price elasticity of demand is ___________. A. zero B. one C. infinity D. undefined 2. The price of car batteries increases by 10 percent and the quantity demanded decreases by 10 percent. What is the price elasticity of car batteries? A. Elastic, and revenue will decrease B. Elastic, and revenue will increase C. Inelastic, and revenue will increase D. Unit elastic, and revenue will not change 3.Assume...

Price Elasticity of Demand. Discuss the price elasticity of demand. Is it directly related to the...

Price Elasticity of Demand. Discuss the price elasticity of demand. Is it directly related to the availability of suitable substitutes for a product? Please integrate the Bible passages in your discussion.

Discuss factors affecting the Price Elasticity of Demand, Income Elasticity of Demand, and Cross-price Elasticity of...

Discuss factors affecting the Price Elasticity of Demand, Income Elasticity of Demand, and Cross-price Elasticity of Demand for LUX, a five-star resort in the Maldives. Identify any unique amenities of the resort and forms of transportation to the remote islands. Discuss why forecasting is critical for the success of the one island, one resort concept. Mention the importances of demand (i.e. effective demand, elasticity, inelasticity) and price while tying in with the topic. At least 200 words (important). Thanks in...

Demand Elasticity: 66% Price Elasticity: -11% Using the price elasticity of demand above, if Starbucks decreases...

Demand Elasticity: 66% Price Elasticity: -11% Using the price elasticity of demand above, if Starbucks decreases its price by 10 percent, what would happen to the quantity demanded for Starbucks coffee?

What is elasticity? What is price elasticity of demand? What is price elasticity of supply?

As price elasticity of demand increases, the burden of a taxgets _______; as price elasticity...

As price elasticity of demand increases, the burden of a tax gets _______; as price elasticity of supply increases, the burden of a tax gets _________.(Here, you can read "bigger" as "heavier" and "smaller" as "lighter" if that helps.)A. smaller; biggerB. bigger; smallerC. smaller; smallerD. bigger; bigger

Subjects