« 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 88 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?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Giraffe bending down to drink. The animal's rete mirabile prevents excess blood flow to the bra Giraffe bending down to drink. The animal's rete mirabile prevents excess blood flow to the bra
Teaching methods based on patients developmental capacity Teaching methods based on patients developmental capacity
Attributed to the Manner of Peleus Painter, Red-figure calyx-krater. Attributed to the Manner of Peleus Painter, Red-figure calyx-krater.
A typical 3 ton (6,000 lb) capacity hydraulic jack. A typical 3 ton (6,000 lb) capacity hydraulic jack.
The distribution of cones and rods over the human retina. The figure illustrates the number of cones ... The distribution of cones and rods over the human retina. The figure illustrates the number of cones ...
Figure 2.15.jpg Figure 2.15.jpg
Video: Mendel's pea plant, Pisum sativum experimental

For a complete list of videos, visit our video library