A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand?   1. A heart valve for heart attack victims   2. Sports car

6. Economics Partners, a consulting firm, estimates the elasticity of ice cream cones to be 1.9. A. If the price of ice cream cones increases by 5 percent, what is expected to happen to the quantity of ice cream cones demanded? B. Given the elasticity estimate of 1.9, is it most likely that the elasticity of demand for Dairy Queen ice cream cones is 1.5, 1.9, or 2.5? Explain.

Explain in your own words what information the income elasticity of demand provides.   If a good is an inferior good, what will the sign of the income elasticity of demand be?  Explain.

Suppose Left Shoes and Right Shoes were sold separately. a. Do you think the cross-price elasticity of Left Shoes and Right Shoes would be positive or negative?b. Given the answer to (a) how would you describe the relationship between these two goods? c. The person who makes Right Shoes increases the price of Right Shoes. How does this effect demand for Left Shoes?  d. Use a graph to illustrate your answer to (c).

I need help answering number 4 and 5.

The subway fare in your town has just been increased from 50 cents to $1.00 per ride. As a result, the transit authority notes a decline in ridership of 60 percent. What is the price elasticity of demand for subway rides?

Problem 2: Last week, the price of envelopes was Php 150 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to Php 175 a box, and Julie is now willing to buy 8 boxes. What is Julie's elasticity of demand? Is Julie's demand for envelopes elastic or inelastic?

Suppose that consumers experience a 5 percent increase in income and purchase walking shoes increase by 6 percent.  What is the income elasticity for walking shoes?  (Give your answer to one decimal place.)

18. If the income elasticity of bikes is 0.72, then bikes are A) a necessity and a normal good. B) a normal good. C) a necessity. D) an inferior good.

Which of the following could have caused the price elasticity of demand to change from a value of -0.5 to -0.8?   Question 20 options:   1)  The increase in substitutes good available.   2)  A rise in the price of substitute good.   3)  A rise in demand for the good.   4)  A rise in income.     Next Page