Homework on Chapter 4

# Homework on Chapter 4 - If the slope of the demand curve...

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Homework 3: Elasticity 1 Suppose that at the original price of \$200, 40 TVs were sold every week and that when price rose to \$210, quantity demanded fell to 30 TVs. What is the percentage decrease in quantity demanded of TVs at the original price? 2 Suppose that at the original price of \$200, 40 TVs were sold every week and that when price rose to \$210, quantity demanded fell to 30 TVs. What is the percentage change in price of TVs at the original price? 3 Suppose that at the original price of \$200, 40 TVs were sold every week and that when price rose to \$210, quantity demanded fell to 30 TVs. What is the price elasticity at the original price? 4
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Unformatted text preview: If the slope of the demand curve is -1.4, price is \$5 and quantity demanded is 13 units, the price elasticity of demand is 5 P r i c e o f s t e a k p e r l b L o r i e ’ s q u a n t i t y d e m a n d e d J e f f ’ s q u a n t i t y d e m a n d e d M a t t ’ s q u a n t i t y d e m a n d e d \$ 3 5 1 0 1 9 \$ 4 3 8 1 3 \$ 5 2 6 9 \$ 6 1 4 7 \$ 7 2 5 If the price of steak increases from \$6 to \$7, total revenues _________, suggesting market demand is ________. 6 A cross price elasticity of -1.2 indicates the two goods are 7 The income elasticity of demand for chicken noodle soup is found to be -0.7. This means chicken noodle soup...
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