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extra elasticity problems

# extra elasticity problems - C inelastic D unitary elastic...

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Elasticity Sample Problems When the price of radios decreases 5%, quantity demanded increases 5%. The price elasticity of demand for radios is ________ and total revenue from radio sales will ________ . A) elastic; decrease B) elastic; increase C) inelastic; decrease D) unit elastic; not change When the price of fresh fish increases 10%, quantity demanded decreases 5%. The price elasticity of demand for fresh fish is ________ and total revenue from fresh fish sales will ________ . A) inelastic; increase B) inelastic; decrease C) elastic; decrease D) elastic; increase When the price of fresh fish increases 10%, quantity demanded is unchanged. The price elasticity of demand for fresh fish is A) perfectly inelastic. B) elastic.
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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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