« previous next »

Author Question: In the figure above, what is Gap's excess capacity? A) 32 jackets per day B) zero C) 4 jackets ... (Read 35 times)

formula1

  • Hero Member
  • *****
  • Posts: 666
on: Jun 29, 2018
In the figure above, what is Gap's excess capacity?
 
  A) 32 jackets per day
  B) zero
  C) 4 jackets per day
  D) 132 jackets per day

Question 2

If the percentage change in quantity demanded is greater than the percentage change in price, can you determine if the demand is elastic, unit elastic, or inelastic? Explain your answer.
 
  What will be an ideal response?
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


yasmina

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

The demand is elastic. The formula for the price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. And, if the elasticity of demand exceeds one, then the demand is elastic. In this case, the percentage change in the quantity demanded is larger than the percentage change in the price, so the elasticity of demand will be greater than one. Hence the demand is elastic.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow Pneumothorax. Figure illustrates how puncture of thoracic wall and tearing of pleural membrane allow
The paleoanthropologist must understand these deformations in order to figure out which strata a fos The paleoanthropologist must understand these deformations in order to figure out which strata a fos
Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de Figure 7.1 shows the rapid decline in the trust of Americans in government since the 1960s. This de
Based on this figure, what pathway is used during urinary catheterization, in which a tube is ... Based on this figure, what pathway is used during urinary catheterization, in which a tube is ...
Attributed to the Manner of Peleus Painter, Red-figure calyx-krater. Attributed to the Manner of Peleus Painter, Red-figure calyx-krater.
Mobilize hand and wrist joints. Apply scissoring to knuckles and figure-8s to fingers. Holding the ... Mobilize hand and wrist joints. Apply scissoring to knuckles and figure-8s to fingers. Holding the ...
Video: Depolarization of the SA node, Action potentials of the myocardium & ANS effects

For a complete list of videos, visit our video library