If a 5% increase in price results in a 15% decrease in quantity demanded ... Group of answer choices The price elasticity of demand is -3.0, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes. The price elasticity of demand is -3.0, indicating that demand for this good is inelastic. We can conclude that this good likely has few substitutes. The price elasticity of demand is -0.33, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes. The price elasticity of demand is -0.33, indicating that demand for this good is inelastic. We can conclude that this good likely has few substitutes. The price elasticity of demand is -45%, indicating that demand for this good is elastic. We can conclude that this good likely has many substitutes.

When the price is $6.00, the quantity demanded is 20. When the price is $9.00, the quantity demanded is 16. Calculate the price elasticity of demand.  You must use the midpoint formula. Given the elasticity of demand, a 10% increase in price will cause quantity demanded to fall by what percentage?  Explain your answer. Is this demand elastic or inelastic?  Explain your answer. What is assumed about consumer income when you measure the price elasticity of demand? Walmart advertises that it has rolled back prices. If Walmart is rolling back prices to raise revenues, should it roll back prices on products that have a price elasticity of demand that is elastic or inelastic?  Explain your answer.

a) Suppose the price of flour increases from $0.60 to $1.10 a pound and the quantity demanded decreases from 100 pounds to 60 pounds. Using the midpoint method, what is the price elasticity of demand for flour? Is the demand for flour elastic or inelastic? b) A 15 percent increase in income brings about a 25 percent decrease in the demand for a good. What is the income elasticity of demand and is the good a normal good or an inferior good?

QUESTION 10 We have the following information: When P = $5, quantity demanded is 120 units. When P = $10, quantity demanded is 100 units. When P = $15, the quantity demanded is 80 units. Assuming a linear demand, when P = $10, the elasticity of demand in total revenue. and a 1 percent decrease in the price will cause is-2, an increase is-1, a decrease is-2.5, an increase Ois -0.4, a decrease

Q11

The demand for a product is q=29p7 items when each item costs p dollars. What is the price elasticity of demand?

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.

Danny "Dollar" dela Cruz is a neighborhood's 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he bakes himself. At a price of $1.75 each, he sells 250. At a price of $1.25 each, he sells 300. Instructions: Use the midpoint method and round your answer to two decimal places. Do not include a negative sign (-). a. What is the elasticity of demand? b. Is demand elastic or inelastic over this price range? O Inelastic O Elastic c. If demand had the same elasticity for a price decline from $1.25 to $0.75 as it does for the decline from $1.75 to $1.25, would cutting the price from $1.25 to $0.75 increase or decrease Danny's total revenue? O Increase O Decrease

. Determinants of the price elasticity of demand Consider some determinants of the price elasticity of demand: • The availability of close substitutes • Whether the good is a necessity or a luxury • How broadly you define the market • The time horizon being considered   A good without any close substitutes is likely to have relatively...........................( elastic/inelastic)    demand, since consumers cannot easily switch to a substitute good if the price of the good rises.   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?(multiple choice)   a) Sports car   b) A heart valve for heart attack victims     The price elasticity of demand for a good also depends on how you define the good. Organize the goods found in the following table by indicating which is likely to have the most elastic…

If price elasticity of supply of a good = 1.45 , how do you interpret this? If price elasticity of supply of a good = 0.45 , how do you interpret this? If price elasticity of supply of a good = 1.00 , how do you interpret this?