Answersch6keyassignmentsarnold - CH 6 ANSWERS TO...

This preview shows page 1 - 2 out of 2 pages.

CH. 6 ANSWERS TO ASSIGNMENTS FOR MASTERING KEY IDEASAssignment 6.1 Answers1.Price elasticity of demand, price elasticity of supply, cross elasticity of demand, and income elasticity of demand are the elasticity concepts covered in this chapter.Assignment 6.2 Answers1.The midpoint formula for calculating price elasticity of demand is:Ed= (ΔQd/ QdAverage) / (ΔP / PAverage)2.Elastic demand implies that the percentage change in quantity demanded is greater thanthe percentage change in price.3.Inelastic demand implies that the percentage change in quantity demanded is less than the percentage change in price.4.Unit elastic demand implies that the percentage change in quantity demanded is equal to the percentage change in price.5.Demand would be perfectly elastic if a change in price makes quantity demanded fall to zero.6.Demand would be perfectly inelastic if a change in price does not affect the quantity demanded.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture