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Unformatted text preview: C) inelastic. D) unitary elastic. The ABC Computer Company wants to increase the quantity of computers it sells by 5%. If the price elasticity of demand is 2.5, the company must change the price by what percent? A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is 5. How should the government change the price of electricity? The price elasticity of demand for heart transplants is perfectly inelastic. What is the price elasticity demand for heart transplants? If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then what is the income elasticity of demand for housing?...
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This note was uploaded on 09/26/2011 for the course 06E 001 taught by Professor Stuff during the Fall '10 term at University of Iowa.
- Fall '10