The price of petrol increases by 20% and remains at the new higher level. Which of the following statements is likely to be true? The price elasticity of demand will be higher a few years after the price change a The quantity of petrol supplied will decrease The price elasticity of demand for petrol will not be affected by the change in the price of petrol over the long run d. Demand for petrol will increase after people adjust to the new higher price The price elasticity of demand will be lower a few vears after the price change

The price of petrol increases by 20% and remains at the new higher level. Which of the following statements is likely to be true? The price elasticity of demand will be higher a few years after the price change a The quantity of petrol supplied will decrease The price elasticity of demand for petrol will not be affected by the change in the price of petrol over the long run d. Demand for petrol will increase after people adjust to the new higher price The price elasticity of demand will be lower a few vears after the price change

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Price elasticity of supply tends to be smaller at prices and greater at prices high; low low; high
Elasticity of supply will increase when:
Price (dollars) 9. 7 10 14 18 22 26 30 Quantity (units per year) In the figure above, using the midpoint method, the price elasticity of demand when the price falls from $8 to $7 is equal to A) 0.62. B) 0.40. C) 2.50. D) 1.00.
Please ASAP... when the price of a kettle increases from OMR 15 to OMR 20, the quantity demanded drops from 3550 units to 2500 units. Calculate the elasticity of demand and comment on the degree of elasticity.
The demand function for a given type of product p=30-2Q.find the point price elasticity of demand when the price is 6 interpret your answer
Suppose an increase in Demand cause surfboard prices to go up from $350 to $450 each. As a result producers increase quantity supplied from 8,000 to 12,000 boards. Calculate the elasticity of supply using the midpoint method. Is this supply elastic or inelastic?
change in the demand of cold drinks from 700 units to 1000 units because of the fall in the price from Rs 15 to Rs 10. Calculate the price elasticity of cold drinks
The price elasticity of demand can be found by: comparing the percentage change in quantity demanded to the percentage change in price. measuring absolute changes in price and quantity demanded. knowing that when price changes, quantity demanded goes in the opposite direction. examining only the slope of the demand curve.
At a price of $150, a cell phone company manufactures 200,000 units. At a price of $250, the company manufactures 400,000 units. What is the price elasticity of supply?
Q2. When price is 20 per unit, demand for a commodity is 500 units. As ti price falls to 15 per unit, demand expands to 800 units. Calculate elasticit of demand.
10
The change in quantity supplied is 60% and the change in price is 40% Calculate the value of elasticity of supply