An increase in the price of electricity will: a. increase the demand for kerosene heaters. b. increase the demand for light bulbs. c. increase the demand for stereos. d. increase the demand for TVs.

(a) At what point price is demand inelastic?Answer:P for q = 15 is; P=30-0.1*〖15〗^2⇨$7.5E_p=-1*7.5/15⇨-0.5As demand is inelastic, when price is $7.5 and quantity demanded is 15. (b) At what price...

 How has the size of the price rise been affected by the price elasticity of demand for Brazil nuts?The price elasticity of demand for the Brazilian nuts can be described...

Price Elasticity of Demand (Ed) = Percentage Change in Quantity Demanded / Percentage Change in Price(-)0.2 = -10 / Percentage Change in PricePercentage Change in Price = -10 / -0.2...

Stereos are elastic demand products because they are used for luxury and therefore not among human basic needs.

If the price of electricity increases, demand for electricity decreases while the demand for kerosene heaters will increase.

P’ = -0.2q dQ/dP = -1/0.2q (a) E = (dQ/dP)*(P/Q) p/0.2q^2 = 0 p=0 or Q = 0. (b) E = (dQ/dP)*(P/Q) = 1 p/0.2q^2 = 1 p = 0.2q^2...

Answer: b-price takerExplanationA perfectly competitive firm is referred to as a price taker because of the characteristics of the market. A large number of sellers and homogeneous products are the...

B. Price taker

3) quantity demanded 4) directly

19) Elastic Demand - a change in price cause a (smaller/larger) change in QD.20) Inelastic Demand- a change in price causes a (smaller/larger) change in QD.