Answered: The elasticity of demand for necessity…

Business

Economics

The elasticity of demand for necessity goods is highly elastic True/False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How price elasticity of demand is important in determining pricing strategies.

A: Price elasticity of demand shows the responsiveness of change in demand due to change in price.

Q: Bobo Motors is tracking sales of its Marathon model. In 2012, 45,000 units where demanded and…

A: Income elasticity of demand: - Income elasticity of demand measures the responsiveness of change in…

Q: elasticity important in the analysis of the market?

A: Price has an inverse relationship on quantity demanded.

Q: If more and more demanded at the same price it is known as extension of demand. True or false

A: # If the price of the commodity changes then this is known as change in quantity demanded. This is…

Q: Using diagrams, show the relevance of price elasticity of demand in business pricing strategies.

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Q: Calculate the elasticity of demand when p = 25. q+400p= 8000

A: Demand means willingness to pay for a good or service.

Q: take a moment to see if you can figure out which of the following products have elastic demand and…

A: The elasticity of demand measures how much the quantity demanded of a good or service changes in…

Q: The demand for a monopolist’s output is 6,000/(p + 4)2, where p is the price it charges. At a price…

A: the elasticity of demand is one in which the adjustment of the quantity demanded because of an…

Q: True/False DEMAND FOR ONE GOOD ALWAYS RISES WITH THE INCREASE IN INCOME.

A: Demand and income has a relationship and this relationship depends upon which type of good we are…

Q: In bazaars around the world, haggling over price is a way of life. Do you think a seller’s…

A: Demand elasticity is a measure of how much a product's demand changes in reaction to changes in…

Q: Elastic demand is sensitive to price changes. Select one: True O False

A: Elasticity of demand measures or assess the sensitive of change in demand following change in price.

Q: The effect of health insurance drug coverage on prescription drug spending depends on the elasticity…

A: The demand is the main factor that determines the quantity supplied in the economy as well as the…

Q: If the Income Elasticity of demand for a product equals (negative .50) or -0.50, then we can…

A: A good may be defined as normal depending upom the income elaticity of the good.

Q: Discuss any four (4) factors that influence elasticity of demand

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: Which of the following is the likeliest price elasticity of demand for a necessity? Question 11…

A: Price elasticity of demand measures the responsiveness in quantity demanded with respect to the…

Q: Give an example of an Elastic product, what makes it elastic? What can make it become inelastic?

A: Demand elasticity means percentage change in quantity demanded due to percentage change in price.…

Q: Describe the general appearance of a demand or a supply curve with zero elasticity

A: Zero elasticity means zero responsiveness of quantity supplied or demanded to price change. It has a…

Q: What effect does the availability of many substitute have on the elasticity of demand for a good

A: Meaning of Price Elasticity of Demand: The term price elasticity of demand refers to the…

Q: Compare and contrast the three types of price elasticity of demand: elastic, inelastic, and unitary…

A: Price elasticity of demand measures how sensitive the quantity demanded of an awesome or service is…

Q: Explanin the concept of Law of elasticity of demand.

A: The sensitivity of the quantity demanded for a given good to a change in the real income of the…

Q: True/False When income elasticity is greater than 1 than that good is most probably a luxury.

A: # A good which has an elasticity of demand greater than 1 is having a really high elastic demand.…

Q: looking for help finding the elasticity of this problem, and if it would be considered Unit elastic,…

A: QD=300-6PQS=2P-20 Find: 1) Equilibrium Price and Quantity. 2) Price elasticity of demand at…

Q: Find the elasticity of demand for the demand equation X = (p+1)² 100 when p = 4.

A: The elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: prices and greater at prices O high; low O low; high

A: Elasticity of supply depicts how much producer responds to the change in the price level.

Q: is elasticity a consumer or producer good? justify your answer

A: The quantity demanded of the good refers to the amount of the good consumers are willing and able to…

Q: If two demand curve intersects, at their point of intersection which demand curve will be more…

A: # Demand curves are downward sloping signifying the law of demand. Also the elasticity of demand…

Q: The income elasticity of demand for an inferior good is A) positive. B negative.

A: Answer: (B) Negative Explanation: The income elasticity for an inferior good is negative. It means…

Q: TRUE OR FALSE. The own price elasticity of demand is unit free but the income elasticity of demand…

A: Elasticity is the relative concept. Price elasticity of demand is measured as the ratio of the…

Q: The price elasticity of supply is a measure of the: Responsiveness of buyers of a good to…

A: Price elasticity of supply indicates the relationship between price and quantity supplied.

Q: The poor tend to have a price elasticity of demand for movie tickets that is greater than 1. Why…

A: Elasticity of demand can be explained by the fact that it is the percentage change in quantity…

Q: p = 3 +0.5Q s S What is the elasticity of supply? (P=10, Q=14)

A: Price elasticity of supply measures the responsiveness of change in quantity supply to change in…

Q: The price elasticity of demand for beer among young adults (age 18 to 24) is about 1.30, and the…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity…

A: Demand: The term demand refers to the quantity of a commodity for which the consumer is willing to…

Q: Explain Marshall’s analysis of elasticity.

A: Please find the answer below.

Question

The elasticity of demand for necessity goods is highly elastic

True/False

Video Video

Expert Solution

Conceptual knowledge

#necessity goods are those goods which are taken into daily use and on which the daily life is based on.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If two demand curve intersects, at their point of intersection which demand curve will be more elastic.
Find elasticity demand for p+0.0003x=15 at x=25,000 , what kind of elasticity is this?
The price elasticity of demand measures which of the following? how responsive the quantity demanded is to changes in price the percentage-slope of the demand curve the slope of the demand curve based on price the rate at which demand changes when price changes
The elasticity of demand is used to determine if a change in price results in a shortage or a surplus. find the market equilibrium. determine if consumers will or will not buy a product. measure how responsive consumers are to a change in price. determine in what direction the demand curve shifts if income changes.
TRUE OR FALSE. If the seller cannot change his quantity supplied of good “w” after the price of good “w” changes, then the supply is considered to be perfectly elastic.
Pick an answer Demand for good X is perfectly elastic. Currently, the price of good X is $5 and quantity demanded is 100,000. If the price increases to $7, quantity demanded will be: 0 60,000 100,000 Impossible to determine.
A good whose elasticity of demand is 0.9 is having high elasticity True/False
Explain why the cross elasticity of demand for substitute goods is positive and the cross elasticity of demand for complements is negative.
20 18 16 Price 14 12 10 ID: 8. 4 2 20 40 60 80 100 120 140 Quantity
Which of the following conditions would result in a higher price elasticity of demand? a longer period of time all of these the good makes up a large portion of one's budget more substitutes