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6 the slope of the demand curve is 08 what is the

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6)The slope of the demand curve is -0.8. What is the elasticity of demand?A)-0.8B)One half of the slopeC)Cant be determinedD)None of the above.
7)Consider the following Statements(i)CROSS PRICE ELASTICITY IS NEGATIVE WHEN TWO GOODS ARESUBSTITUTES(ii)CROSS PRICE ELASTICITY IS NEGATIVE WHEN TWO GOODS ARECOMPLEMENTS
8)Suppose elasticity of demand is 0.8 and elasticity of supply is 1.2. The Government nowimposes a $10 tax.
9)The price elasticity of supply is 0.2. The initial quantity supplied is 20 units. Now priceincreases by 10%. What is the new quantity supplied?
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D)20.110)Suppose firm X faces a demand curve with elasticity of demand 1.7. The current quantitydemanded is 40 units @ a price of $10. The owner of the firm wants to increase prices by10% . Evaluate the decision. Explain your reason.A)The price must be increased because demand is inelastic.B)The price must not be increased because the demand is inelastic.C)

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Term
Spring
Professor
Dil
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 1
Exploring Microeconomics
Sexton
Expert Verified

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