{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Study Guide Test 2

Study Guide Test 2 - C hapter 4 4.1 What is the elasticity...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: 4.1: What is the elasticity of demand for season ski passes? When the price of a season ski pass is $400, buyers wish to purchase 10,000 passes per year; but when price falls to $380, the quantity demanded rises to 12,000 passes per year. At the original price, what is the price elasticity of demand for ski passes? Is the demand for ski passes elastic with respect to price? 4.2: What is the price elasticity of demand when P=4 on the demand curve in Figure 4.4? For the demand curves, D 1 and D 2 shown in Figure 4.5, calculate the price elasticity of demand when P=4. What is the price elasticity of demand on D 2 when P=1?
Image of page 1

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

View Full Document Right Arrow Icon
4.3: If a 10 percent increase in income causes the number of students who choose to attend private universities go up by 5 percent, what is the income elasticity of demand for private universities?
Image of page 2
4.4: For the supply curve shown in Figure 4.13, calculate the elasticity of supply when P=6. 1. Why does a consumer’s price elasticity of demand for a good depend on the fraction of the consumer’s income spent on that good? 2. Why does the price elasticity demand for a good decline as we move down along a straight-line demand curve?
Image of page 3

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

View Full Document Right Arrow Icon
Image of page 4
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