CHAPTER 6| Elasticity: The Responsiveness of Demand and Supply SOLUTIONS TO END-OF-CHAPTER EXERCISES Answers to Thinking Critically Questions 1. Even if the overall demand for gasoline is inelastic‚ a revenue increase for Joe’s Gas-and-Go will occur only if the percentage increase in price is greater than the percentage decrease in quantity demanded. If Joe’s price increase is too large and Joe has other competitors who do not raise their prices‚ then it is possible that the percentage
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What is Economics? Economics is the study of choices Choices must be made because resources are scarce Make a list of all the stuff you like to acquire assuming unlimited income Dr. S Home on ICWW Tons of boats F-350‚ Club Cab Season tickets to NYY‚ NJ Nets‚ NY Giants Condo in NYC Tickets to Cup Races Mobile Home Triumph TR-6 Toyota Landcruiser Realistic income Home near ICWW A boat Occasional tickets Toyota 4 Runner Choices mean we make trade-offs Opportunity Cost Informal
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is kg·m/s. During a collision objects transfer momentum to each other‚ resulting in different motions than before the collision. In this activity you will study the motion colliding objects. ELASTIC Collisions 1. What defines a collision as being elastic? 2. Simulate the four elastic collisions below. Complete the table using math formulas and the simulation. BEFORE COLLISION ptotal AFTER COLLISION # m1 m2 v1 v2 v1 v2 1 2.0 kg 2.0 kg 1.5 m/s 0 kg·m/s 2 2.5 kg 5.0 kg -1
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Elastic Collision between carts of equal mass: Collision 1 Mass (kg) Initial Velocity (m/s) Final Velocity (m/s) Momentum Initial (kg*m/s) Momentum Final (kg*m/s) Red Cart 2.0 + 50.0 0 0 0 Blue Cart 2.0 - 50.0 0 0 0 Elastic Collision between carts of unequal mass: Collision 2 Mass (kg) Initial Velocity (m/s) Final Velocity (m/s) Momentum Initial (kg*m/s) Momentum Final (kg*m/s) Red Cart 1.0 + 50.0 -33.33 50 -33.33 Blue Cart 2.0 - 50.0 66.66
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sticks‚ buffalo wings and others). The company shines with its home delivery service. This paper will show how Domino ’s Pizza can increase or decrease its revenue by using price elasticity of demand and will discuss interpretations of elastic demand‚ inelastic demand and unit elasticity. Furthermore‚ this paper will show how determinants of price elasticity of demand affect decisions by
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Professor C.L. Ballard Fall Semester 2012 Economics 201‚ Sections 1 and 2 Answer/Discussion of Problem Set 4 Elasticity 1. The price of Good X decreases from $1.10 per unit to $0.90 per unit. As a result‚ the quantity demanded increases from 800 units per week to 1200 units per week. What is the own-price elasticity of demand for Good X? a. Zero b. 0.5 c. 1.0 d. 2.0 e. 2.75 Answer: d. The own-price elasticity of demand is the proportional change in quantity demanded
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Part 1 of 3 - 100.0/ 100.0 Points Question 1 of 16 10.0/ 10.0 Points Demand is price inelastic if: A.the price of the good responds slightly to a quantity change. B.the demand curve shifts very little when a demand shifter changes. Correct C.the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price. D.all of the above are true. Answer Key: C Question 2 of 16 10.0/ 10.0 Points If the absolute value of price elasticity
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g-it/ Stallings‚ W. (2009). Business Data Communications. 6th Edition. Upper Saddle River‚ NJ: Prentice Hall. Elastic and Inelastic. Please respond to the following: Provide three examples of inelastic traffic not discussed in the text and validate their inclusion as inelastic. Video Conferencing is inelastic traffic because its streaming isn ’t one way. Stock trading is inelastic traffic because it requires real time
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has three ranges when determined. The first is elastic demand. Elastic demand occurs when the price elasticity demand is greater than one. It occurs when a change in price of one percent causes one percent change in quantity demanded. Another range of elasticity is unit elasticity of demand. It occurs when a change of one percent causes exactly one percent to change in quantity demanded. A third range is inelastic demand. It is the opposite of elastic demand. It occurs when a change of a price of
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demand for good B increases from D0 to D1‚ then goods A and B 4) _______ A) are substitute goods. B) will have a negative cross elasticity of demand. C) are inferior goods. D) are both price elastic but not perfectly price elastic. 5) In the above figure‚ if the two goods A and B‚ are complements ‚ which of the following is true? 5) _______ A) The shift from D0 to D1 for good B leads to a shift from S0 to S1 for good A. B) The
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