ECN 101 Homework 2 with Questions and Answers

ECN 101 Homework 2 with Questions and Answers price elasticity of demand measure the change in ANSWER quantity demand due to the change price if your friend says "i am never going to buy another avicii remix again!" his price elasticity of demand fo avicii remixes is ANSWER perfectly inelastic nita is devoted coca-cola consumer, whereas becky can drink either coca-cola or pepsi products. nita's demand for coca-cola will be relatively more ____, while becky's demand will be relatively more ____ ANSWER inelastic; elastic a producer knows that the price elasticity for his product is -0.5. he wants to increase quantity demanded by 30%. by what percentage does he need to change the price? ANSWER -60% demand is almost always more price elastic in the long run because ANSWER more options become available and people can make different choices kevin tells the manager at moo's ice cream that he won't buy any ice cream cones costing more than $2, but he will buy a limitless number at any price less than$2. his price elasticity of demand for ice cream cones is ANSWER perfectly elastic the sunny softball league found that, when it changed its ticket prices rom $10 to %5 there was a more than proportional but not infinite increase in attendance. the price elasticity of demand is ANSWER elastic as you move right along a demand curve, the price elasticity of demand ANSWER becomes more inelastic