(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...
1 Answers 1 viewsRelatively elastic demand refers to the demand when the proportionate change produced in demand is greater than the proportionate change in price of a product. The numerical value of relatively...
1 Answers 1 views(a) Your income elasticity of demand; The income elasticity of demand=1Income elasticity of demand refers to sensitivity of quantity demanded for a particular product to change in income of consumers...
1 Answers 1 viewsEntrepreneurs might be able to make goods more price inelastic by increasing the price for those goods said to be inelastic such as basic goods which people can not do...
1 Answers 1 viewsb) Perfectively elastic
1 Answers 1 viewsP’ = -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...
1 Answers 1 viewsThe 5 aspects affecting price elasticity of demand include price level and substitutes availability. Similarly, when a good tends to be a necessity or a luxury usually determine the price...
1 Answers 1 views19) 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.
1 Answers 1 views21)inelastic22)elastic
1 Answers 1 viewsElastic demand means there is a substantial change in quantity demanded when another economic factor changes (typically the price of the good or service), whereas inelastic demand means that there...
1 Answers 1 views