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If the price for some good increases by 10% and the quantity demanded falls by 5%,

(a) what is the price elasticity of demand, and

(b) is this elastic or inelastic?

Ā 

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Vaishnavi Kanukurti
Vaishnavi KanukurtiLv10
28 Sep 2019

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Related questions

1. In each case below, what is the value of the price elasticity of demand? Is demand perfectly inelastic, inelastic, unit elastic, elastic or perfectly elastic?

a. Price falls by 10%, quantity demanded rises by 8%

b. Price rises by 3%, quantity demanded falls by 3%

c. Price rises by 1%, quantity demanded falls by 5%

d. Price rises by 5%, quantity demanded collapses to zero

e. Price falls by 2%, quantity demanded does not change

*Please provide the answer but also explain what is inelastic, elastic,unitary elastic

*Please explain elasticity of demand values

*Please explain what is an inferior good, how to obtain the answer.



1) If the price of gasoline increases 10% and quantity demanded decreases by 5%, then the demand curve for gasoline is:

A) inelastic.

B) elastic.

C) unitary elastic.

D) a perfect substitutable good.

2) If a good has an elasticity of demand of 21, then we say the good is:

A) highly inelastic.

B) unitary elastic. C) not elastic.

D) highly elastic.

3) For inferior goods, when an individual's income decreases, quantity demanded for these goods increases.

A) True

B) False

67) 67) The price of apples falls by 5 percent and quantity demanded increases by 6 percent. This means that the demand for apples is A) perfectly inelastic. B) perfectly elastic. C) elastic. D) inelastic. E) unitary elastic.

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