The demand for rosebushes in a market is as follows: Price (per rosebush) Quantity Demanded (rosebushes per

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The demand for rosebushes in a market is as follows:

Price (per rosebush)             Quantity Demanded (rosebushes per week)

$10 ..................................                                            230

$11 ..................................                                            150

$12 ..................................                                              90

$13 ..................................                                              40

a. Is this a straight-line demand curve? How do you know?

b. Calculate the price elasticity of demand for roses for a price increase from $10 to $11. Is demand elastic or inelastic for this price change?

c. Calculate the price elasticity of demand for roses for a price increase from $12 to $13. Is demand elastic or inelastic for this price change?


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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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