In the last six months, the price of fuel for cars has increased very substantially in many countries. Explain why we might expect demand to be more price elastic in the long-run than in the short-run

The figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $25 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.) Demand is unit-elastic inelastic elastic C Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 A B D 40,000 80,000 120,000 160,000 200,000 240, Quantity (taxi rides per day)

In the United States, the long-run elasticity of oil demand has been estimated at -0.5. Some policymakers and environmental scientists would like to see the United States cut back on its use of oil in the long run. We can use this elasticity estimate to get a rough measure of how high the price of oil would have to permanently rise in order to get people to make big cuts in oil consumption. How much would the price of oil have to permanently rise in order to cut oil consumption by 50%?   Question 7 options:   5%   25%   50%   100%

An entrepreneur's most recent venture is selling robots that he builds and programs himself. At a price of $160 each, he sells 660 robots. At a price of $290 each, he sells 340 robots. What is the price elasticity of demand for his robots? Present your elasticity using its absolute value.

You've estimated the market demand curve for the tea market as P=111 -4Q. What is elasticity of demand for tea at P=61 in absolute terms?

If Congress prohibited the sale of Japanese luxury cars like Lexus, Acura, and Infiniti, how would this affect the price elasticity of demand for Mercedes, BMWs, and Jaguars in the U.S.?

Elasticity of demand tells us:                       How much price responds to a shift in demand     How people react to a change in demand.     How much quantity demanded changes when price changes.     How much price changes in response to a change in demand.

With higher fuel costs, airlines raised their average fare from $0.75 to $1.25 per passenger kilometer and the number of passenger kilometers decreased from 5 million a day to 3 million a day. What is the price elasticity of demand for air travel over this price range?

Which of the following best explains why the supply of housing in Detroit is much less elastic than in other cities? The automotive industry's dominance of the economy in Detroit discourages building homes in the city, even if prices rise People find Detroit to be an undesirable place to live and wouldn't invest in houses in Detroit, even if pices rise The high number of vacant houses in Detroit discourages builders from constructing new homes, even if prices rise There is a fixed amount of land in Detroit, which limits the number of new houses that can be built if prices rise

Calculate the elasticity of supply for the supply curve P=10+3Q when P=25 and Q=5