USING THE CASE OF ELASTIC DEMAND AND INELASTIC DEAND, DISCUSS THE IMPACT OF TOTAL REVENUE ON...

USING THE CASE OF ELASTIC DEMAND AND INELASTIC DEAND, DISCUSS THE IMPACT OF TOTAL REVENUE ON THESE DEMAND CURVES (30) MARKS

Expert Solution

Rahul Sunny answered 1 year ago

Define Elasticity Price Elasticity of Demand Total Revenue What is the difference between Inelastic and Elastic?...

Define Elasticity Price Elasticity of Demand Total Revenue What is the difference between Inelastic and Elastic? What determines whether the demand curve is Inelastic or Elastic?

• 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?

2. Elastic, inelastic, and unit-elastic demand

2. Elastic, inelastic, and unit-elastic demand The following graph shows the demand for a good 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. True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.

Define elastic and inelastic demand

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.

7- If demand is , a price cut the total revenue. elastic; increases unit elastic;...

7- If demand is ________, a price cut ________ the total revenue. elastic; increases unit elastic; decreases inelastic; increases inelastic; does not change 5- Samantha was willing to pay $10 for a hamburger because she was hungry but she only paid $2.50. What is the consumer surplus Samantha gained from the hamburger? $2.50 $7.50 $10.00 $12.50 9- When the price rises, the firms' producer surplus ________. When the price falls, the firms' producer surplus ________. increases; decreases decreases; increases decreases;...

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

Are cigarettes relatively demand elastic or demand inelastic? Explain using the determinants of price elasticity of...

Are cigarettes relatively demand elastic or demand inelastic? Explain using the determinants of price elasticity of demand. Does the burden of cigarette taxes fall more heavily on buyers or sellers? Explain. Do you think that higher cigarette taxes will deter more people from smoking? (200 WORDS)

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...

What happens to total revenue if price increases and demand is inelastic? Why?

If the demand for a product is inelastic, it means that the quantity demanded of that product does not change significantly in response to changes in the product's price. In this scenario, if the price of the product increases, the total revenue earned by the seller will also increase.

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