Elastic demand - Study guides, Class notes & Summaries

Elasticity Ans: A measure of how much one economic variable responds to changes in another economic variable. Price elasticity of demand Ans: The responsiveness of the quantity demanded to a change in price, measured by dividing the percentage change in the quantity demanded of a product by the percentage change in the product's price. Equation for Measuring the Price Elasticity of Demand Ans: (Percentage change in quantity demanded) / (Percentage Change in Price) Price Elasticity o...

By focusing the customers on the price of a product, you make: a. the demand for the product more inelastic b. the customers less price sensitive to the product c. the demand for the product more elastic d. only B&C correct answers c. the demand for the product more elastic large amusement parks charge entrance fees rather than fee per ride because: a. customers are more sensitive to paying a fee per ride b. customers are less sensitive to paying a fee per ride c. customers view paying...

What is a statutory burden? - correct answers Responsibility of paying a tax on a product to the government What is economic burden? - correct answers Who bears the burden of the tax Tax incidence - correct answers Who bears the economic burden of taxes What way does the supply curve shift when supply is more elastic for a tax on sellers? - correct answers Upwards - Price paid by buyers increases - Remainder is paid by sellers - Buyer bears most of the economic burden How does the...

MHA 710 - Healthcare Economics - Exam 3 UPDATED ACTUAL Questions and CORRECT Answers In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)? a. Customers cannot know that different prices are being charged. b. Markets must be segmentable, identifying differences in ability to pay. c. Demand for services must be relatively price elastic. d. Profitable service expansion ...

MHA 710 - Healthcare Economics - Exam 3 UPDATED ACTUAL Questions and CORRECT Answers In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)? a. Customers cannot know that different prices are being charged. b. Markets must be segmentable, identifying differences in ability to pay. c. Demand for services must be relatively price elastic. d. Profitable service expansion ...

ECON 201 Final Exam | Questions with complete solutions A profit-maximizing firm will: A. expand employment if marginal revenue product equals marginal resource cost. B. reduce employment if marginal revenue product equals marginal resource cost. C. reduce employment if marginal revenue product is less than marginal resource cost. D. expand employment if marginal revenue product is less than marginal resource cost. Which of the following describes the equilibrium condition in a purely competit...

Internal/External Factors of Price - Answer-Internal Factors of Price: 1. Marketing Objective 2. Marketing Mix Strategy 3. Cost External Factors of Price: 1. Demand for your product. 2. Competition 3. Economy Price Elasticity - Answer-Elastic - Consumers buy more or less of a product when the price changes Inelastic- An increase or decrease in price will not significantly affect demand What happens to price/revenue when the demand is elastic/inelastic - Answer-Demand is... Pr...

The main concept demonstrated in the production possibilities frontier is -Correct Answer Opportunity cost When country A has a lower opportunity cost of producing sugar relative to country B, then country A is said to have -Correct Answer Comparative Advantage A graph that shows the combinations of two goods that the economy can produce given the available scarce resources and available technology is called a -Correct Answer Production Possibilities Frontier Assume a production possibi...

MG101 EXAM QUESTIONS WITH ALL CORRECT ANSWERS What goes into distribution decisions? - Answer- anticipate the margin economics, anticipate competitors' reactions, anticipate channel members' reactions, anticipate your own capabilities 2 main problems with distribution decisions - Answer- coordination problems - inventory incentive problems - price vs. volume Economic Value to the Customer (EVC) - Answer- maximum price a customer is willing to pay, based on total life cost, comp...

ECON 101 Week 3 Quiz Winter 2024 Already passed;AMU Question 1 10 / 10 points Demand is price inelastic if: the price of the good responds slightly to a quantity change. the demand curve shifts very little when a demand shifter changes. the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price. all of the above are true. Question 2 10 / 10 points If the absolute value of price elasticity is greater than 1, thi...