The price elasticity of demand for a product

Assignment Help Business Economics
Reference no: EM131164500

If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?

A) a rise in price of 0.5 percent B) a rise in price of 2 percent C) a fall in price of 0.5 percent D) a fall in price of 2 percent.

Reference no: EM131164500

Questions Cloud

Gross private domestic investment : Gross private domestic investment = 40 Government purchases of goods and services = 30 Gross national product (GNP) = 200 Current accoimt balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from..
What is the effective interest rate per year : Student Emergency Financial Services, Inc., which makes small loans to college students, offers to lend $550. The borrower is required to pay $42 at the end of each week for 16 weeks. Find the interest rate per week. What is the nominal interest rate..
Use the aggregate supply-aggregate demand model : Use the Aggregate Supply - Aggregate Demand model to determine which of the following will likely lead to inflation. Following a negative AS shock to the economy which of the following statements is most true?
Delaware senate approved gun buyback program : On June 14, 2011, the Delaware Senate approved a gun buyback program. The yearlong program would authorize the state to pay $100 for every gun turned over to police. What sort of guns should Delaware officials expect to get if this plan becomes law?
The price elasticity of demand for a product : If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Using group in developing descriptive statistics : Provide the steps in creating a Group in EViews. What are Descriptive statistics? Provide the steps in using a Group in developing Descriptive Statistics. What is a Scatter Diagram and what information does it convey?
Not affect the elasticity of demand for product : Which of the following would increase the supply of corn? If the quantity of Harley-Davidson motorcycles demanded decreases by 10% when the price increases by 20%, the price elasticity of demand for Harley-Davidson motorcycles is: Which of the follow..
Globalization has no effect on terrorism : Many foreign policy and terrorism analysts view U.S. foreign policies in the Middle East as being conducive to terrorism. The killing of Osama bin Laden in 2011 by U.S. Special Forces effectively ended global terrorism. Poverty is not considered to b..
Paper dragon limited partnership makes two products : The Paper Dragon Limited Partnership makes two products, paper and cardboard. The relationship between π, the firm’s annual profit (in thousands of dollars), and its output of each good is: find the output of each good that Paper Dragon LP should pro..

Reviews

Write a Review

Business Economics Questions & Answers

  Suppose that an individual maximizes

Suppose that an individual maximizes u(x,y)=x1^a x2^b (α, β > 0) subject to the budget constraint p1x1 + p2x2 = y. Solve for x1 and x2 (the optimal values of x1 and x2, which are the demands for x1 and x2) Are x1 and x2 , normal or inferior? Does dem..

  Calculate and graph what happens to G-AD-GDP

Calculate and graph what happens to G, AD, GDP, and Prices if the government increases government spending by 100 billion and the MPC = .80. Calculate and graph what happens to T, C, AD, GDP, and Prices if the President raises taxes by 100 billion an..

  Equilibrium price and quantity of florida oranges

Explain how will this event affect the equilibrium price and quantity of Florida oranges.

  Identify the business need for the car sharing is project

Start by addressing the following tasks: Identify the business need for the Car Sharing IS project. Consider the needed interfaces to other systems

  Think digital strategy is suitable for a luxury industry

Provide TWO (2) reason why it is said wineries that are looking to make an impact in China must create a strong digital strategy." In your opinion, do you think digital strategy is suitable for a luxury industry like the wine market?

  The economy by creating and issuing more money

Why is NOT a good idea for Federal Government to spend money, without paying for it in tax revenues and for the Federal Reserve to increase the money supply in the economy by creating and issuing more money?

  Q1 elucidate how do the gdp per capitals change after

q1. elucidate how do the gdp per capitals change after accounting for price indices? explain why is it significant to

  National income accounting data

Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Value Compensation of employees $196.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Governme..

  Concept in order to balance the economy

The spending multiplier’ was introduced Describe what it is and how it works. Explain why is it important for the Federal Reserve to consider this concept in order to ‘balance’ the economy?

  Market operations to raise the interest rate

If the fed decides to use open market operations to raise the interest rate what will it do?  Be specific about who within the federal reserve system makes the decision, and who else is involved in the process.

  Sells gas lamps to consumers through retail outlets

Alliance, Inc. sells gas lamps to consumers through retail outlets. Total industry sales for Alliance's relevant market last year were $100 million, with Alliance's sales representing 5% of that total. Contribution margin is 25%. Alliance's sales for..

  Market for beer is perfectly competitive

The market for beer is perfectly competitive. The price of a barrel of beer is $40. Fine Beers is a company that produces the beer and has total cost function of TC = 480 + Q2 (Q squared). It also has a marginal cost given by MC = 2Q, where Q is barr..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd