Over time,technological advance increases consumers'incomes and reduces the price of smart phones.Each of these forces increases the amount consumers spend on smartphones if the income elasticity is greater than ______and if the price elasticity of demand is greater than _______. a.zero, zero b.zero, one c.one ,zero d.one,one

1. As a transit planner for the city of Miami, you must predict how many people ride the Miami Metrorail and how much money is generated from train fares. According to a recent study, the short-run elasticity of demand for Metrorail is 0.62 and the long- run elasticity is 1.59. The current ridership is 50,000 people per day. Suppose the city commission decides to increase fares by 10%. Predict the changes in train ridership over a one-month period and a five-year period. ANS: b. Over the one-month period, will total revenue increase or decrease? What will happen in the five-year period? ANS

1. Your younger brother needs $600 to buy a new computer. He has opened a sandwich stand to make the money he needs. Your father is paying for all of the ingredients. He currently is charging $2 per sandwich, but he wants to adjust his price to earn the $600 faster. If you know that the demand for sandwich is elastic, what is your advice to him? Explain.

Considering the concept of elasticity of demand, which of the following items is likely to be the most elastic?   a.     fresh water.   b.   tobacco / cigarettes   c.     medical procedures.   d.     bottled air from Banff.   e.   gasoline.

Use the mid-point method to calculate the elasticity.  1. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 10, what is the elasticity? 2. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 18, what is the elasticity? Explain your work.

what is the concept of elasticity and also explain how elasticity affects the revenue earned by a firm.