When the price of product is increased

Assignment Help Business Economics

Reference no: EM131099386

When the price of a product is increased 15 percent the quantity demanded decreases 10%. we can therefore conclude that the demand for this product is:

a. elastic

b. inelastic

c. cross-elastic

d. unitary elastic

Reference no: EM131099386

Questions Cloud

Recent concerns about global warming : Recent concerns about global warming have lead firms to expect a higher depreciation of their capital in the future and households to expect lower levels of future income. Explain, with the help of a graph, what happens to a firm’s desired level of f..

Why is the demand for water price-inelastic : Although water is essential to life no matter where one lives, the demand for water differs across regions. In one study it was found that the price elasticity of demand for water in all regions of the United States ranged from 0.39 to 0.69. Why is ..

What is the real user cost of the building : A firm just purchased a building that cost $5 million. The nominal mortgage interest rate is 5% per annum, mortgage interest payments are tax deductible, and the firm is in a 20% tax bracket. The expected inflation rate is 3%. Maintenance expenses ar..

About the reserve ratio : If the reserve ratio is 10 percent and a bank receives a new deposit of $800, which of the following will this bank most likely to do?

When the price of product is increased : When the price of a product is increased 15 percent the quantity demanded decreases 10%. we can therefore conclude that the demand for this product is:

Example of what type of price discrimination : A car dealership typically determines a distinct price for a car for each customer. This is an example of what type of price discrimination? Why is the dealership able to carry out this type of price discrimination?

What is the economic term used to describe this phenomena : Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceuti..

Policies would most likely achieve the goal : Assume that the government is planning to address the problem of high prices for flu vaccine. You are hired as an economic consultant to decide upon what kind of a policy to implement in order to improve both the accessibility and affordability of fl..

Share of national prescription drug spending increased : Medicare beneficiaries started to receive outpatient prescription drug benefits beginning in 2006, with the implementation of Medicare Part D. As a result, Medicare’s share of national prescription drug spending increased. Explain how the pharmaceuti..

User Account

All Pages