« previous next »

Author Question: If the value of the price elasticity of demand is 0.2, this means that: a. a 20 percent decrease in ... (Read 10 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jun 30, 2018
If the value of the price elasticity of demand is 0.2, this means that:
 a. a 20 percent decrease in price causes a 1 percent increase in quantity demanded.
  b. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded.
  c. a 5 percent decrease in price causes a 1 percent increase in quantity demanded.
  d. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded.
  e. a 100 percent decrease in price causes a 200 percent increase in quantity demanded.

Question 2

If the price of Pepsi-Cola increases from 40 cents to 50 cents per bottle and the quantity demanded decreases from 100 bottles to 50 bottles, then according to the averaging equation, the value of price elasticity of demand for Pepsi-Cola is:
 a. 0.5.
  b. 0.25.
  c. 1.
  d. 3.
  e. 2.


mathjasmine

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Localization of a Peptide The peptide is revealed by means of immunocytochemistry. The photomicrogra Localization of a Peptide The peptide is revealed by means of immunocytochemistry. The photomicrogra
A sphere represented by means of modeling. A sphere represented by means of modeling.
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
Palpating for skin elasticity Palpating for skin elasticity
The original Supply and Demand graph The original Supply and Demand graph
Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ... Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...
Video: Carbon fixing adaptations Animation

For a complete list of videos, visit our video library