Homework 2.docx - Question1 2/2pts ,usethegraphabove.,what...

Info icon This preview shows pages 1–7. Sign up to view the full content.

Question 1 2 / 2 pts For the next 6 questions, use the graph above. USING THE MIDPOINT METHOD, what is the absolute value of the price elasticity of demand between P=100 and P=80?    0.3333      0.5      0.75      1      1.5      2  
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

   2.5      3      3.5     Question 2 2 / 2 pts The value found in the above question is considered to be:    elastic      unit elastic      inelastic     Question 3 2 / 2 pts Suppose that at this point, producers raised the price by 5%. What would happen to  quantity demanded as a result?    it would rise by 5%     
Image of page 2
it would fall by 5%      it would rise by more than 5%      it would fall by more than 5%      it would rise by less than 5%      it would fall by less than 5%     Question 4 2 / 2 pts USING THE MIDPOINT METHOD, what is the absolute value of the price elasticity of  demand between P=40 and P=20?    0.3333      0.5      0.75      1  
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

   1.5      2      2.5      3      3.5     Question 5 2 / 2 pts The value found in the above question is considered to be:    elastic      unit elastic      inelastic     Question 6 2 / 2 pts
Image of page 4
Suppose that at this point, producers raised the price by 5%. What would happen to  quantity demanded as a result?    it would rise by 5%      it would fall by 5%      it would rise by more than 5%      it would fall by more than 5%      it would rise by less than 5%      it would fall by less than 5%     Question 7 2 / 2 pts The following graph below represents a linear demand function.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Use the graph to answer the following questions. Elasticity values are greater than 1 (in  absolute value) in the portion of the graph described by letter _____.    a      b      c     Question 8 2 / 2 pts Elasticity values are less than 1 (in absolute value) in the portion of the graph described  by letter _____.
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern