Why would consumers demandlong run if the price

Assignment Help Business Economics

Reference no: EM1322817

Q. The subsequent table gives some data on the demand for long distance telephone calls:

QTY (millions of minutes every day)

Price (cents every minute): SHORT RUN LONG RUN

10 700 1000

20 500 500

30 300 0

If the price rises from $.20 to $.30:

A. Graph the relationship.

B. Compute the numerical elasticity of short-run demand. Is it unitary, elastic, inelastic, etc.?

C. Compute the numerical elasticity of long-run demand. Is it unitary, elastic, inelastic, etc.?

D. Is the demand for calls more elastic in the short-run or long run?

E. Why would consumers demand 0 minutes in the long run if the price was $.30 every minute?

Reference no: EM1322817

Questions Cloud

Elucidate how many units of fish could it now consume : elucidate how many units of fish could it now consume along with the 80 units of imported wheat.

Protecting against the attack : Major corporations, governments, and the other organizations are hacked every week, mostly by the means of phishing the attacks. Explain how users and IT organizations must arm themselves against these attacks.

Implementing a new payroll system for business : You have decided to implement a new payroll system for your business. Review the following business requirements and highlight any potential issues.

Question based on multiple regression : Multiple choice question based on multiple regression - The coefficient of determination for this model is

Why would consumers demandlong run if the price : Why would consumers demand 0 minutes in the long run if the price was $.30 every minute.

Different approaches for systems simulation models : Different approaches for creating systems simulation models include?

Chi-square test for independent of attributes : Chi-square test for independent of attributes - A random sample of students is interviewed to determine if there is an association between class and attitude toward corporations?

Computing the fmin value : Compute the minimum: Graphically, Numerically with the f min search function

Describe the term organizational development : Define the term OD (Organizational development), and explain how its techniques are used to implement change.

User Account

All Pages