Suppose that you observe that when the price of cigarettes rises by 10%, the quantity of cigarettes purchased falls by 8.7%. This implies that cigarettes are price in demand and that the price elasticity of demand is equal to elastic; 1.15 O inelastic; 1.15 inelastic; 0.87 elastic; 0.87

Suppose the price elasticity of demand for a good is -0.4 how will be the expenditure on good be effective when there is 10% increase in the price of the goods

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Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data shows that the quantity of  Netflix subscriptions changed from 100 to 115 in the past year. Compute the income elasticity for Netflix subscriptions, is the demand for Netflix subscription income elastic or income inelastic?

Data from the Bureau of Labor Statistics shows that U.S. income increased by 10% while consumer data shows that the quantity demanded of organic lemonade drinks changed from 80 to 85. Compute the income elasticity for organic lemonade drinks, is organic lemonade a normal or an inferior good?

When the local pizza parlor prices pizzas at $12 each, it generally sells 7000 pizzas per month. If it lowers the price to $10, sales increase to 9000 pizzas per month. Given this information, we know that the price elasticity of demand for pizza is about 1.38, and an increase in price from $10 to $12 results in a decrease in total revenue. 0.72, and an increase in price from $10 to $12 results in an increase in total revenue. 0.72, and an increase in price from $10 to $12 results in a decrease in total revenue. 1.38, and an increase in price from $10 to $12 results in an increase in total revenue.

If the current price elasticity of demand for apples is -50, what will be the change in sales (i.e., total revenue) after a 20% price increase? Please show your calculation.

A gas station owner observed that when he increased the price of gasoline, his total revenue declines. What does that tell us about the relative elasticity of demand for gas at this gas station? Is it elastic, inelastic, or unit elastic? How can you determine the relative elasticity?

If the price of new automobiles decreases by 5%, and the quantity of new automobiles demanded increases by 20%, then the price elasticity of demand is equal to: 1.1. 2. 0.25. 3.4. 4.0.75.

How to calculate price elasticities for demand for rice and coffee at P=6, respectively.   (1) P=12-2Q for coffee (2) P=12-3Q for rice