If a 10% increase in the price of beer reduces the quantity demanded by 8%, then...

Question

Question

The answer is A, but I thought that whenever quantitity demanded changes as a result of price change that makes it Elastic? Please explain!

business economics

Answer 1

Answer #1

Answer 2

Similar Homework Help Questions

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)...
1. At a price of $5, quantity demanded is 70; and at a price of $7,...

1. At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________. A.is unchanged; unit elastic B.is increased; elastic C.is decreased; inelastic D.is unchanged; elastic 2. Demand determines ________ entirely when ________ is perfectly inelastic. A.quantity; supply B.price; supply C.price and quantity; supply D.price and quantity; demand
If a sharp increase in the price of Juul pods barely reduces the quantity demanded, we...

If a sharp increase in the price of Juul pods barely reduces the quantity demanded, we would say that Juul pods are _______. A. Elastic B. Inelastic C. Unit elastic D. Substitutes

15. When price = $12, quantity demanded = 1,200. When price = $14, quantity demanded =...

15. When price = $12, quantity demanded = 1,200. When price = $14, quantity demanded = 1,025. When the firm lowered price from $14 to $12, it discovered that demand is_ _ _and total revenue __by a. elastic; increased; $14,400 b. elastic; decreased; $14,400 c. inelastic; increased; $50 d. elastic; increased; $50 e. inelastic; decreased; $3,150
.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.
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50...

12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...

If the quantity demanded of juice decreased by 15% when the price of juice increased by...

If the quantity demanded of juice decreased by 15% when the price of juice increased by 10%, the price elasticity of demand for juice is , and the demand for juice is said to be 2/3: elastic c. 3/2; elastic b. 2/3: inelastic d. 3/2; inelastic If the absolute value of the price elasticity of demand for milk is equal to 0.6, the demand for milk is: a relatively elastic. C. relatively inelastic, b. unit elastic. d. perfectly inelastic, demand...
If the quantity demanded of a product drops to zero with an increase in its price,...

If the quantity demanded of a product drops to zero with an increase in its price, then the demand for that product is said to be _____. a. inelastic b. unit elastic c. perfectly elastic d. perfectly inelastic
answer it Immediately please?? it) When the price of a good decreased by 10%, the quantity...

answer it Immediately please?? it) When the price of a good decreased by 10%, the quantity demanded increased by 30%. (Note: this question is not related to parti). a. Is the demand for this good elastic, unit elastic, or inelastic? Show calculations. b. Are substitutes for this good easy to find or does it have poor substitutes? Is it more likely to be a luxury or necessity? Explain. c. Based on the elasticity explain how total revenue has changed.

If, for a given percentage increase in price, quantity demanded falls by a proportionately larger percentage, then...

If, for a given percentage increase in price, quantity demanded falls by a proportionately larger percentage, then demand is relatively price elastic. relatively price inelastic. unit price elastic. perfectly price elastic OOOO