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Author Question: If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity ... (Read 79 times)

tatyanajohnson

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on: Jun 30, 2018
If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:
 a. perfectly elastic.
  b. perfectly inelastic.
  c. elastic.
  d. inelastic.
  e. unitary elastic.

Question 2

Suppose the quantity demanded is 1,000 million bushels of peaches per year when the price is 3 per bushel and 1,500 million bushels when the price is 1 per bushel. The price elasticity of demand in this range of the demand curve is:
 a. elastic. b. inelastic.
  c. unitary elastic. d. infinitely elastic.


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wfdfwc23

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Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

b


tatyanajohnson

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

kusterl

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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