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Author Question: If a good's demand function is Q = 30 - 3P, then calculate the price elasticity of demand when a. ... (Read 66 times)

SGallaher96

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on: Jul 1, 2018
If a good's demand function is Q = 30 - 3P, then calculate the price elasticity of demand when
 
  a. good price is 3 using the point elasticity formula
  b. good price is 4 using the point elasticity formula
  c. good price decreases from 4 to 3, using the arc elasticity formula
  d. good price is 5, using the point elasticity formula
  e. good price increases from 4 to 5, using the arc elasticity formula

Question 2

Bundling
 
  A) is when firms sell multiple separate goods together for a single price.
  B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging.
  C) increases transaction costs for consumers.
  D) is illegal in most U.S. states.


tmlewis4706

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Reply #1 on: Jul 1, 2018
Answer to Question 1

(a) -0.429; (b) -0.667; (c) -0.538; (d) -1.000; (e) -0.818

Answer to Question 2

A


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