# Refer to exhibit 20 9 what is the price elasticity of

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Chapter 2 / Exercise 49
Applied Calculus
Berresford/Rockett
Expert Verified
189. Refer to Exhibit 20-9. What is the price elasticity of supply between \$2 and \$4?a. 2.0b. 0.75c. 1.33d. 0.50ANSWER: bPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ApplicationNOTES: New190. Refer to Exhibit 20-9. What is the price elasticity of demand between \$4 and \$6?a. 0.825b. 0.833c. 1.25d. 1.20ANSWER: cPOINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ApplicationNOTES: New191. Refer to Exhibit 20-9. What is the price elasticity of supply between \$4 and \$6?a. 0.825b. 0.833c. 1.25d. 1.20ANSWER: bPOINTS: 1DIFFICULTY: Challenging
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Chapter 2 / Exercise 49
Applied Calculus
Berresford/Rockett
Expert Verified
NATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ApplicationNOTES: New192. If the demand for health care is elastic and health care co-payments are lowered, the percentage change in the quantity demanded of health care will be _______________ than the percentage decrease in co-payments, and the total dollar amount spent on health care will ___________.a. greater; riseb. less; risec. greater; falld. less; fallANSWER: aPOINTS: 1DIFFICULTY: ModerateNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ComprehensionOTHER: Economics 24/7NOTES: New193. Assume that the buyers of good Z fall into two groups: buyers that have elastic demand and buyers that have inelasticdemand. If the firm selling good Z can charge different prices to different groups of people, the firm would prefer to ______________ the price charged to the elastic group and _______________ the price charged to the inelastic group. a. raise; lowerb. lower; lowerc. lower; raised. raise; raiseANSWER: cPOINTS: 1DIFFICULTY: ModerateNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: ComprehensionOTHER: Economics 24/7NOTES: NewEssay194. List and describe four factors that are relevant to the determination of price elasticity of demand.ANSWER: 1) Number of substitutes - The more substitutes there are for a product (and the closer the substitutes are) the higher the price elasticity of demand. 2) Necessities versus luxuries - The more that a good is considered to be a luxury rather than a necessity, the higher the price elasticity of demand. 3) Percentage of one's budget spent on the good - The greater the percentage of one's budget spent on the good, the greater the price elasticity of demand. 4) Time - The more time that passes since the price change, the greater the price elasticity of demand for the good.
POINTS: 1DIFFICULTY: ChallengingNATIONAL STANDARDS: United States - BUSPROG: AnalyticLOCAL STANDARDS: United States - OH - Default City - DISC: ElasticityKEYWORDS: Bloom's: Comprehension195. Describe what cross elasticity of demand measures. Be specific in your response.