Answer the Following Questions About Price Elasticity of Demand

question 103

Essay

Answer the following questions about price elasticity of demand.
a. The price elasticity of demand for Major League Baseball tickets is -0.50. What happens to the quantity of tickets sold if ticket prices rise by 5%?
b. The price elasticity of demand for fried chicken is -1.12. What happens to expenditures on fried chicken following a price increase?
c. Suppose the demand for insulin is given by Q^D = 1,000. What is the price elasticity of demand at P = $100?
d. What will happen to the price elasticity of demand if there are more substitute goods available?

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Definitions:

Sponges

Simple aquatic invertebrates known for their porous bodies through which water flows, extracting nutrients and oxygen.

Cubozoans

Members of the class Cubozoa, a group of highly venomous box jellyfish known for their cube-shaped medusae and potent stings.

Nemerteans

The phylum of animals commonly known as ribbon worms; each has a proboscis (tubular feeding organ) for capturing prey.

Proboscis

A long projection originating from an animal's head, particularly in insects, that serves for either eating or detecting stimuli.