Refer to Scenario 5 . Calculate the price elasticity of demand for DVD players. Is demand for players elastic, inelastic, or unitary?
What will be an ideal response?
Percentage change in quantity demanded is 1.24 . Percentage change in price is -0.67 . The price elasticity of demand for DVD players is 1.86 or relatively elastic.
Economics
You might also like to view...
Refer to Figure 24-3. Which of the points in the above graph are possible long-run equilibria?
A) A and B B) A and C C) A and D D) B and D
Economics
Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome:
a. made an economic profit of $500. b. made a loss of $500. c. made an economic profit of $1,500. d. made a loss of $1,500. e. should have shut down in June.
Economics