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 63 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
YES! Correct, THANKS for helping me on my review

Mochi

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Four Arch Curve Four Arch Curve
A Dose-Response Curve A Dose-Response Curve
Dose-response curve with threshold Dose-response curve with threshold
Three Types of Lipids The three types of lipids vary in structure Three Types of Lipids The three types of lipids vary in structure
The Lorenz Curve for the United States, 2009 The Lorenz Curve for the United States, 2009
Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus). Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus).
Video: Protein catabolism (Krebs cycle) and Protein anabolism (protein synthesis)

For a complete list of videos, visit our video library