Demand is more inelastic in the short-term because consumers: Answer A. Are impatient B. Have no time to find available substitutes C. Are present-oriented D. Are neither impatient, have no time to find available substitutes nor are present-oriented
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- Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?The price elasticity of demand is more likely to be inelastic if Othere are a lot of substitutes available. O the price of the product is a large fraction of income. Othere is a long time frame involved. O the product is a necessity.To say there is an elastic demand for a product means that O consumers are not very responsive to a change in the price of the product. there are relatively few substitutes, few competitors, and a short time period under consideration. O there is a positive relationship between price and total revenue. O consumers are very responsive to a change in the price of the product.
- A product with an inelastic demand means that consumers are relatively insensitive to a change in the quantity demanded. O consumers are relativcly insensitive to a change in the price of the product. రేడకలు consumers are relatively sensitive to a change in the price of the product. O producers are relatively insensitive to a change in the price of the product.Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -4. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. If you are entering a negative number, be sure to use a (-) sign. a. The price of good X decreases by 5 percent. percent b. The price of good Yincreases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 4 percent. 4 percentSuppose the price elasticity of demand for beef is about 1.2. Other things equal, this means thata 15 percent increase in the price of beef will cause the quantity of beef demanded to 7 Multiple Choice еВook increase by approximately 8 percent. decrease by approximately 18 percent. decrease by approximately 8 percent. decrease by approximately 12 percent. 7 of 20 Mc Graw Hill 84F Sunny Type here to search
- Which is characteristic of a product with elastic demand? A. The good is regarded by consumers as a necessityB. There are a large number of good substitutes for the goodC. Buyers spend a small percentage of their total income on the productD. Consumers have had only a short time period to adjust to changes in priceAn increase in the number of substitutes to Good E will lead to an increase in the income elasticity of demand for Good E O an increase in the price elasticity of demand for Good E an increase in the cross elasticity of demand for Good E O an increase in the price elasticity of supply for Good ESuppose the own price elasticity of demand for good X is -2, its income elasticity is -1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Yis -3. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. a. The price of good X decreases by 4 percent. percent b. The price of good Yincreases by 10 percent. percent c. Advertising decreases by 3 percent. percent d. Income increases by 2 percent. percent
- When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is: O cross-elastic. inelastic. Ounitary elastic. O elastic.Home heating gas tends to have demand becaue O elastic; it has few close substitutes O elastic; people have lots of time to adiust ther corsm O inelastic; people spend alarge share of ther incoms at et O inelastic; it is a necessityYou were promoted as the manager of a new Clean-well Sanitary Store that sells cleaning and sanitation products wholesale. You recently read in an article there that the price of vitamins is expected to increase by 20 percen. How will this affect your store's sales of sanitation products? Items Selexted Cross price elasticity Food supplements 0.34 Medicines 0.56 Foods 0.09