In: Economics
1. For each of the following products, explain why you think demand for them is likely to be elastic or inelastic.
2. Fill in the missing values from the following table:
( fill the lowercase letters: a, b, c, d, e )
Demand for |
%ΔP |
%ΔQ |
E |
Ben & Jerry’s |
+10% |
-12% |
a. |
Beer at football game |
-20% |
b. |
-.5 |
Broadway tickets |
c. |
-15% |
-1.0 |
Chicken |
+10% |
d. |
-1.2 |
Beef |
-15% |
10% |
e. |
4. Describe what will happen to total revenue in the following situations:
5. For each of the following products, explain why you think the supply of them is likely to be elastic or inelastic.