Which of the following is likely to have the highest (in absolute value) demand elasticity? A.Cigarettes b.A necessary medication without close substitutes c.Camel brand cigarettes

Your research estimates the (own) price elasticity of demand for coffee as0.12 in absolute terms. If coffee prices rise by 8% what do you predict willbe the percentage change in quantity of coffee demanded?

If the price of product X increases from $10 to$12, the quantity demanded for gasoline (X) will fall from 100 to 82 and the quantity demanded for product Y also fall from 90 to 63 but the quantitydemanded for product Z will increases from 50 to76. a.What is price elasticity of demand for X?b.What is cross-price elasticity of demand for Ywith respect to price X? What are X and Y?c.What is cross-price elasticity of demand for Zwith respect to price X? What are X and Z?

If the price of product X increases from $10 to $12, the quantity demanded for gasoline (X) will fall from 100 to 82 and the quantity demanded for product Y also falls from 90 to 63 but the quantity demanded product Z will increase from 50 to 76. a.What is the price elasticity of demand for X?b.What is cross-price elasticity of demand for Ywith respect to price X? What are X and Y?c.What is cross-price elasticity of demand for Zwith respect to price X? What are X and Z?

In the figure below, what is the point price elasticity of demand when price is $60? 120 P Price ($) 100- 80 60 40 14 20- es Correct! Demand 0 200 400 600 800 1,000 1,200 Quantity O -0.50 -1.60 -2.00 -0.75 -1.00

If the cross-price elasticity of demand between printed textbooks and ebooks is +0.70, a. are ebooks and textbooks complementary or substitute goods? b. If textbook prices increase by 10 percent, by how much will ebook demand change?

Suppose the accompanying table contains data on how many Veggie Delite sandwiches Subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5.00 to $7.50. Please round to the nearest hundredth. Price(per sandwich) Quantity supplied(sandwiches per day) $5.00 200,000 $7.50 210,000 a. Daily price elasticity of supply for Veggie Delite sandwiches = b. The daily price elasticity of supply for Veggie Delite sandwiches is relatively Elastic or Inelastic Now consider how responsive Subway’s supply of Veggie Delite sandwiches is to changes in price on an annual basis instead of a daily basis. c. Compared to the daily value, the annual price elasticity of supply for Veggie Delite sandwiches is likely to be more Inelastic or Elastic  and the annual supply curve is likely Flatter or Steeper  to be than the daily supply curve.

Listen The price elasticity of supply of hot dog buns is estimated to be 1.5, Holding everything else constant, this means that a 10 percent decrease in the price of hot dog buns will cause the quantity of hot dog buns supplied to decrease by approximately 25 percent 1.5 percent 15 percent approximately 5 percent Previous Page Next Page Page 16 of 28

Q4

a. Define own price elasticity on-demand with an example b. define cross-price elasticity on-demand with an example