When demand is unit elastic, an increase in price will lead to increased total revenue for the product. Elasticity: Elasticity is the responsiveness of quantity demanded of a good with respect to the change in the price of t...
A worldwide drought could increase the total revenue of farmers if the price elasticity of demand for grain is inelastic. The drought reduces the supply of grain, but if demand is inelastic, the reduction of supply causes a large increase in price. Total farm revenue would rise as a result...
Given the price elasticity of demand and the percentage change in price, we can solve for the percentage change in Q demanded. 结果一 题目 If the price elasticity of demand for a good is 4.0, then a 10 percent increase in price would result in a: () A. 4% decrease in the quantity ...
A decrease in the price of X from $6 to $4 causes an increase in the quantity of Y demanded (at the current price of Y) from 900 to 1,100 units. What is the cross elasticity of demand between X and Y? a) 0.5 b) -0.5 c) 2 d) -2 e...
It showed that private car drivers in Beijing reduced their trips in the one month period following the price adjustment. Certain trip characteristics and drivers demographics significantly influenced price elasticity in the short term, including the purpose of the trip, the distance covered and the ...
A 5 per cent fall in the price of a good raises its demand from 300 units to 318 units. Calculate its price elasticity of demand. View Solution Due to a 10 percent rise in the price of a commodity , its quantity supplied rises from 400 units to 450 units. Calculate its price elastici...
If the price of milk increased by 5 percent because of an increase in the demand for milk, and the quantity of milk supplied increased by 7 percent, A. the supply curve of milk has shifted rightward. B. the price elasticity of supply of milk is greater than one. C. milk is more ...
In Philadelphia, daily egg purchases increased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased from 300 to 400 dozens. The price elasticity of demand is therefore A. lower in the smaller city as would be expected. B. greater in the smaller city as would ...
percent increase in the price of jet fuel causes a4percent decrease in the consumption of jet fuel. What is the price elasticity of demand and do you think this is a realistic number? Explain why b.In a recent fare war, Westjet redu...
If a one percent increase in the price of oranges leads to a five percent increase in the quantity supplied, the price elasticity of supply for oranges is __. 答案: A.1/5B.2C.1/2D.5正确答案:5 点击查看答案 你可能感兴趣的试题 单项选择题 ___ was established in 1877, held from...