# If 50 units are sold at a price of 20 and 80 units

• Notes
• 7
• 94% (18) 17 out of 18 people found this document helpful

This preview shows page 5 - 7 out of 7 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 1
Microeconomics
Arnold Expert Verified
14) If 50 units are sold at a price of \$20 and 80 units are sold at a price of \$15, what is the absolute value of the price elasticity of demand? Use the midpoint formula. A) 0.17 B) 0.62 C) 1.62 D) 5
15) If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 1
Microeconomics
Arnold Expert Verified
16) Which of the following goods would have the most inelastic demand?
17) Consider a demand curve that has a constant elasticity value of 0. What happens to quantity demanded and total revenue when price increases?
18) Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peets' Coffee. A) hot beverages, coffee, Peets' Coffee B) Peets' Coffee, coffee, hot beverages C) coffee, Peets' Coffee, hot beverages D) coffee, hot beverages, Peets' Coffee
19) Economists estimated that the price elasticity of beer is -0.23 and the income elasticity of beer is -0.09. This means that
20) What is the value of the price elasticity of supply between gand h?
• • • 