Question: Answer the question on the picture Calculating and Graphing Elasticity of Demand demand elasticity = percentage change in quantity demanded percentage change in price A

Answer the question on the picture

Calculating and Graphing Elasticity of Demand demand elasticity = percentage change in quantity demanded percentage change in price A result of greater than 1 is elastic. A result of less than 1 is inelastic. 23. Suppose the price of gas were to rise $2.00 a gallon to $3.00 a gallon. This is a 50% increase in price. Also supposed consumers reacted to this price rise by buying 11% less gas. Calculate the elasticity and draw a simple demand curve in the space on the next page. . Explain why this product was elastic or inelastic. 24. Suppose the price of energy drinks rose 50% from $2.00 to $3.00. And suppose consumers reacted to this price increase by buying 80% fewer bars. Calculate the elasticity and draw a simple demand curve. . Explain why this product was elastic or inelastic

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

We, the Supreme Court, categorically believe that pornographic films should be regulated. In particular, we believe that stemming the tide of commercialized obscenity serves legitimate state...

The formula for calculating the income elasticity of demand is______: a. Percentage change in quantity demanded divided by percentage change in price b. New quantity demanded minus old quantity...

The formula for calculating the income elasticity of demand is______: a.Percentage change in quantity demanded divided by percentage change in price b.New quantity demanded minus old quantity...

1. The price elasticity of demand A. A change in quantity demanded B. How far a demand curve shifts C. A change in price D. The responsiveness of quantity demanded to a change in price 2. When a...

Quiz Question 1 (Mandatory) (2 points) The price elasticity of demand is the percentage change in Question 1 options: a) income divided by the percentage change in price. b) price divided by the...

Question 1 The basic structure of every elasticity measure is a. the percentage change in price that results from a one-percent change in quantity demanded. b. the percentage change in quantity...

Q1 Do not copy from internet or chegg be original otherwise i will downvote... How do the price elasticities of demand and supply relate to each other ? If we talk in simple terms the elasticity is...

1 Do not copy from internet or chegg be original otherwise i will downvote... How do the price elasticities of demand and supply relate to each other ? If we talk in simple terms the elasticity is...

Two bikes A and B start from one point and move along two roads at right angles to each other. If their speeds be respectively 42 km/hr and 56 km/hr, then after 30 minutes they will be x km apart....

a. Design i. Design an algorithm that accomplishes the below task. Publish that algorithm HERE, using MS Word or Visio tools ii. b. Code i. c. Run Program the above using ANY object-oriented language...

Find the face value o f the zero - coupon bond. 2 0 - year bond a t 5 . 9 6 5 . 9 6 % ; price $ 8 4 5 0 8 4 5 0 Question content area bottom Part 1 The face value o f the zero - coupon bond will b e...

Bamburg Ltd's retained earnings at the date of acquisition was $ 135,000. No ordinary shares were issued/ redeemed by the subsidiary since acquisition. The group used the proportion of the net assets...

Note In the following questions a statement of assertion followed by a statement of reason is given. Choose the correct answer out of the following choices. (i) Assertion and reason both are correct...

A Quebec-based company works in the import/export of pharmaceuticals. For several months, it has to respond to interesting orders, which come to it from a new customer in Africa. It, therefore, asks...

Mekala is the nanny for Mr. and Mrs. Perera who takes care of their children and helps clean the house. Mrs. Perera has promised $10 per hour. Mekala usually works for 5 hours per day. On Friday the...

1 What is one way effective that we can lessen the impact of trade-offs in logistics? a. Give the customers everything they want b. Apply lean principles to reduce waste c. Stay ahead of the game...

1. Too understand personal motivation.

3. Imagine three people you know relatively well. Consider which of the five positions they often use in the conversations they engage in with other people.

4. Select a person you want to model. Choose what you want to model in this person, such as relationship skills. a. Observe what he does and how he does this in relationships with others. b. Try to...