If an 8 percent decrease in the price of lobster leads to a 15 percent decrease...

Question

Question

business economics

Answer 1

Answer #1

Option C.

If an 8 percent decrease in the price leads to a 15 percent decrease in the quantity of lobster supplied then the supply of lobster is elastic.
Any good or a service is said to have an elastic supply if any fall in its price leads to a greater fall in its supply by the producer's.
This shows that the supply of any good or a service reacts rapidly with the changes in its price.
Hence the supply of lobster can be considered as elastic.

Answer 2

Similar Homework Help Questions

.If a 10 percent price increase generates a 20 percent decrease in quantity demanded, then demand...

.If a 10 percent price increase generates a 20 percent decrease in quantity demanded, then demand is A. unit elastic. B. inelastic. C. elastic. D. perfectly inelastic . E. perfectly elastic.
If the price elasticity of supply is 5, supply is said to beThe choices for the...

If the price elasticity of supply is 5, supply is said to beThe choices for the first one is: Perfectly elastic, elastic, unit elastic, inelastic, perfectly inelastic. Same with the last choices. If the price elasticity of supply is 5, supply is said to be perfectly elastic This means that a 1% increase in the price of the product will lead to a % change in the quantity supplied. Supply is Cresponsiveto price changes. If a 1% change in price...
A 5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) p...

A 5 percent increase in income leads to a 5 percent decrease in quantity demanded for a product. This product is a(n) product and demand is inferior; income inelastic normal; income inelastic inferior; unit income elastic normal; unit income elastic O O O

25) What is measured by the price elasticity of supply? A) The price elasticity of supply...

25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
Figure 5-1 Panel A Panel B Price Demand Demand Quantity Quantity Panel C Panel D Price...

Figure 5-1 Panel A Panel B Price Demand Demand Quantity Quantity Panel C Panel D Price Demand Demand Quantity Quantity Refer to Figure 5-1. A perfectly elastic demand curve is shown in Panel D. Panel B. Panel C. Panel A. Figure 5-8 Price Supply 120 180 Quantity Refer to Figure 5-8. What is the value of the price elasticity of supply between g and h? O 0.5 02 20 percent 0.02 If demand is perfectly price inelastic, the absolute value...
25. In Meinenchester the supply of lobster is perfectly inelastic, the demand for lobster is unit...

25. In Meinenchester the supply of lobster is perfectly inelastic, the demand for lobster is unit elastic. A $5 tax on lobster will be borne; a. Mainly by the sellers b. Mainly by the buyers c. All by the sellers d. All by the buyers

If an 8% decrease in price leads to a 4% increase in the quantity demanded of...

If an 8% decrease in price leads to a 4% increase in the quantity demanded of the good, as a result of the price change, the total revenue for this product will: a) decrease b) increase c) not change d) double If a 12% increase in price leads to a 6% decrease in quantity demanded of the good, as a result of the price change, the total revenue for the product will: a) not change b) decrease c) increase d)...
Completed 28 UULUI JU Suppose that an increase in the price of a good leads to an increase in total revenue. Ignori...

Completed 28 UULUI JU Suppose that an increase in the price of a good leads to an increase in total revenue. Ignoring other factors (like supply at its current price the good must be: O O O O perfectly price-elastic. inferior. price elastic. price-inelastic
If a 5 percent decrease in the price leads to a 6 percent increase in the...

If a 5 percent decrease in the price leads to a 6 percent increase in the quantity demanded, the price elasticity of demand is 1 6 1.20 .83

If demand is elastic then a 1% decrease in price leads to a fall in quantity...

If demand is elastic then a 1% decrease in price leads to a fall in quantity greater than 1%. then a 1% decrease in price leads to a rise in quantity of greater than 1%. then a 1% decrease in price leads to a rise in quantity of less than 1%. then a 1% decrease in prices leads to a rise in quantity of 1%.