- Questions & Answers
- Get Expert Help
- Get Coins
When the demand in the market is perfectly inelastic then any change in the price level will not change the demand at all and the people will demand the same amount as they were demanding at a lower price. For example Salt, and food in general, If the price of salt is $10 people will demand 2 units of salt If the price increased to $100 people will be demanding the same amount.
Perfectly elastic demand is situation where a slight change in the price will reduce the demand to zero. some goods with perfectly elastic demand are agriculture goods.
3. When is demand perfectly inelastic? When is demand perfectly elastic? Explain the difference between these...
3. Consider a perfectly inelastic supply curve at q = 1,013, and a perfectly elastic demand curve at p = 101. A subsidy of $5 per unit is given to producers. Using a diagram, explain how the subsidy is shared between consumers and producers. What is the Deadweight Loss? (30%)
When large changes in price lead to no changes in quantity demanded, demand is perfectlyGroup of answer choicesinelastic, and the demand curve will be vertical.inelastic, and the demand curve will be horizontal.elastic, and the demand curve will be vertical.elastic, and the demand curve will be horizontal.
1. What is meant by price elasticity? 2. Define the terms elastic and inelastic (in words). 3. What range or price elasticity coefficients correspond to the following: a. elastic demand b. inelastic demand c. unit elasticity 4. What does it mean to say that a product is perfectly inelastic? Provide examples. 5. Explain the relationship between total revenue and elasticity. What will happen to total revenue when price is increased for a product with elastic demand? Inelastic demand? Unit elastic...
3. If demand is perfectly elastic, consumer surplus is negative. TRUE OR FALSE. Please explain. 4. If demand is perfectly inelastic, what is the value of consumer surplus? Explain.
Task:PED Using a graph explain whether you think oil has an elastic demand or inelastic demand. You should provide a two sided answer. Using a graph explain whether you think apples have an elastic supply or inelastic supply. Again, you should provide a two sides answer.
5. Describe how deadweight loss changes when demand is elastic and inelastic. 8. Describe how deadweight loss changes when supply is elastic and inelastic 10. Explain the difference between the benefits principle and the ability-to-pay principle.
The perfectly competitive firm's demand curve is: Perfectly elastic. Relatively elastic Perfectly inelastic. Relatively inelastic Statement 1: In the long run, firms in a monopolistically competitive industry will be producing that quantity that maximize social surplus. Statement 2: In the long run, firms in a monopolistically competitive industry will be producing at the minimum of its ATC curve. Statement (1) is true; statement (2) is false. Statements (1) and (2) are both true. Statement (1) is false; statement (2) is...
explain elastic demand , inelastic demand and unit elastic demand with curve and example for each
Chap.6 Please show that when imposing A Tax on Buyers: Perfectly inelastic demand: Buyers pay the entire tax. Perfectly elastic demand: Sellers pay the entire tax. Perfectly inelastic supply: Sellers pay the entire tax. Perfectly elastic supply: Buyers pay the entire tax.
To determine if the demand for a good is inelastic, elastic, or unit elastic between two prices, a seller might raise the price to see what happens to total revenue: If total revenue rises, demand is