This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Compute the elasticity of demand for the demand curve p = 15Q-0.7. Does the elasticity vary with the ... (Read 30 times)

daltonest1984

  • Hero Member
  • *****
  • Posts: 536
on: Jul 1, 2018
Compute the elasticity of demand for the demand curve p = 15Q-0.7. Does the elasticity vary with the price?
 
  What will be an ideal response?

Question 2

Joe's budget constraint equals 500 = 2F + 100S, where 500 is Joe's income, 2 is the price of food (F, y-axis) and 100 is the price of shelter (S, x-axis). How much food can Joe buy if he buys one unit of shelter?
 
  A) 2 units
  B) 200 units
  C) 250 units
  D) 400 units


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

JYan

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 1, 2018
Answer to Question 1

For constant elasticity demand as this, the elasticity is the same throughout the demand curve. E = -0.7

Answer to Question 2

B


daltonest1984

  • Member
  • Posts: 536
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

scikid

  • Member
  • Posts: 300
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

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 first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Myocardial Oxygen supply and demand Myocardial Oxygen supply and demand
Frequency distribution curve: interpatient variability in drug response. Frequency distribution curve: interpatient variability in drug response.
The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage
Economic recession in 2008 saw a small decrease in demand Economic recession in 2008 saw a small decrease in demand
Composition of Various Fats Foods vary in their composition of fat Composition of Various Fats Foods vary in their composition of fat
A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ... A 600-kg car is going around a curve with a radius of 120 m that is banked at an angle of 20° ...
Video: Neuron Structure Animation

For a complete list of videos, visit our video library