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Assignment#3

# Assignment#3 - Title Assignment 3 DUE FEB 1 Started 10:05...

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View Attempt 1 of unlimited Title: Assignment 3 DUE FEB 1 Started: January 21, 2010 10:05 PM Submitted: January 21, 2010 10:59 PM Time spent: 00:54:25 Total score: 20/20 = 100% Total score adjusted by 0.0 Maximum possible score: 20 1. Demand is said to be elastic if Student Response Correct Answer 1.the price of the good responds substantially to changes in demand. 2.buyers do not respond much to changes in the price of the good. 3.demand shifts substantially when the price of the good changes. 4.the quantity demanded responds substantially to changes in the price of the good. Score: 1/1 2. If a good is a necessity, demand for the good would tend to be

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Student Response Correct Answer 1.unit elastic. 2.inelastic. 3.horizontal. 4.elastic. Score: 1/1 3. If a person only occasionally enjoys a cup of coffee, his demand for coffee would be Student Response Correct Answer 1.unit elastic. 2.inelastic. 3.horizontal. 4.elastic. Score: 1/1 4. When the price of bubble gum is \$0.50, the quantity demanded is 400 packs per day. When the price falls to \$0.40, the quantity demanded increases to 600. Given this information and using the midpoint method, you know that the demand for bubble gum is Student Response Correct Answer 1.perfectly inelastic.
Student Response Correct Answer 2.inelastic. 3.elastic. 4.unit elastic. Score: 1/1 5. Suppose the price of Twinkies is reduced from \$1.45 to \$1.25 and, as a result, the quantity of Twinkies demanded increases from 2,000 to 2,200. Using the midpoint method, the price elasticity of demand for Twinkies in the given price range is Student Response Correct Answer 1.1.00.

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Assignment#3 - Title Assignment 3 DUE FEB 1 Started 10:05...

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