If the price of bananas rises 5%, and as a result the quantity supplied rises by 3%, the price elasticity of supply for bananas is Two of the answers are correct. 1.67. inelastic elastic
Added by Ashley L.
Close
Your feedback will help us improve your experience
Haricharan Gupta and 81 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
if price elasticity of supply is 1.5 and price increases by 3%, quantity supplied wiil a. increase (correct) b. wrong answer =3%, which one is correct 3% or 3% If price elasticity of supply is 1.5 and price increases by 3 percent, quantity supplied will increase by 3 percent
Haricharan G.
Your price elasticity of demand for bananas is 4 If the price of bananas rises by 5 percent, what is a. The percentage change in the quantity of bananas you buy? b. The change in your expenditure on bananas?
a. Based on these demand elasticity estimates, which fruit is most inelastically demanded? Which is most elastically demanded? b. For which of these fruits would a 10% drop in price cause an increase in total revenue from that sale of that fruit? c. If the government could offer “10% off” coupons for only three of these fruits, and it wanted to have the biggest possible effect on quantity demanded, which three fruits should get the coupons? d. Overall, the authors found that for the average fruit, the elasticity of demand was about -0.5. Is the demand for fruit elastic or inelastic? apple: -0.16 banana: -0.42 grapefruit: -1.02 grapes: -0.91 oranges: -1.14
Andrew D.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD