Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products. Now the question is: Which product experiences a larger change in QUANTITY and why?

Describe in detail the determinants of price elasticity of demand. Why is a perfectly elastic demand curve horizontal? What does that mean? Why is a perfectly inelastic demand curve vertical? What does that mean? Suppose that a two percent decline in coffee leads to a one percent increase in quantity demanded, would that show demand to be elastic or inelastic?

The table below provides elasticity estimates, use them to answer the questions that follow. Type of Elasticity Estimate Price elasticity of demand for uber rides -1.20 Price elasticity of demand for taxis -0.60 Cross-price elasticity of demand for uber and taxis 0.50 Income elasticity of demand for uber rides 0.95 Price elasticity of supply for taxis 0.40 Suppose there was a 15% decline in the quantity of ubers, what would be the effect on price? a.+9 % b. +25% 0c-9% Od.+12.5%

Which of the following is most likely to have a low price elasticity of demand? A good that is very expensive. A good with no close substitutes. A good that most people consider a luxury. All are equally likely to have a low price elasticity of demand.

Denzil's Fried Chicken estimates its demand function for Chicken Dinners to be (see image) a. Given current price and income variables, how many chicken dinners are sold each month? b. What is the income elasticity of demand? 

The demand for ceiling fans can be modeled as D(p) = 25.02(0.992) thousand ceiling fans where p is the price (in dollars) of a ceiling fan. (a) Locate the point of unit elasticity. (Round your answers to two decimal places.) The point of elasticity occurs when p = $ and D(p) = thousand ceiling fans. (b) For what prices is demand elastic? For what prices is demand inelastic? (Round your numerical answers to two decimal places.) Demand is inelastic for < p < Demand is elastic for p ? ✓

Q1

Would you consider your demand for gas to be relatively elastic or inelastic? What changes do you make to your demand for gasoline when the prices start to climb up?

Q4

The demand curve for original Iguanawoman comics is given by q = (403-p)^2/100      (0 ≤ p ≤ 403), where q is the number of copies the publisher can sell per week if it sets the price at $p. (a) Find the price elasticity of demand when the price is set at $39 per copy. (Round your answer to two decimal places.)   (b) Find the price at which the publisher should sell the books to maximize weekly revenue. (Round your answer to the nearest cent.) $ (c) What, to the nearest $1, is the maximum weekly revenue the publisher can realize from sales of Iguanawoman comics? $