CONCEPTBudget Constraints: Change in Price 11Which of the following is an example of perfectly elastic demand? Danny got a tip that the price of downloads on iTunes was going to increase, so he purchased 20 additionalsongs today.Juan stopped purchasing peaches from his cousin's stall at the farmer's market when his cousin was theonly farmer to raise prices.Susie always purchases three bagels on Friday because the bakery runs a special that day.The Smith family eats at the same pizza restaurant each week because they have the best sauce. CONCEPTDefining Elasticity 12On a popular Internet deals site, consumers purchased 1,000 weekend getaway packages when the price was$300. After the price increased to $400, consumers purchased 600 packages. This graph shows the elasticity ofdemand for the weekend getaway package.
7/4/2020 Sophia :: Welcome 7/11 Using the midpoint formula, what is the own-price elasticity of the weekend getaway package? 13According to consumer choice theory, what will a rational consumer do?
7/4/2020 Sophia :: Welcome 8/11 CONCEPTConsumer Choice Theory 14Select the cross-price elasticity amount below that is categorized as a substitute. 15Which of the following would most likely have an income elasticity of 3? A high-end luxury carA cell phoneClothing from a second-hand storeDinner at a local pizzeria
7/4/2020 Sophia :: Welcome 9/11 CONCEPTIncome Elasticity 16Select the statement below that is true.
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- Fall '19