Marekting

Q1
1.5-2/2 = 25% - Price
10-7/7 = 42.86% - Quantity

42.86% / 25% = 1.714

Demand is elastic because penury dos more than pro rata to a deepen in price.

Q2
2010 Price 1.25
2011 - Price 1.50

Change in Price = 1.25-1.50/1.50 = 20%
Change in Demand = 4.3%

a. 4.3% / 20% = .215 = Demand is inelastic
b. When demand is inelastic a spread out in price leads to a rise in agree revenue
c. The time period allowed following a price change demand is more price elastic, the longer that consumers have to respond to a price change. They have more time to depend for cheaper substitutes and switch their spending.??

Q3
a)
Drugs Price -100 Demand 100
Drugs Price two hundred Demand 90

Computers - 100 Demand 100
Computers 200 Demand 20

Computers would undergo the highest quantity change because for elastic wells demand responds more than proportionately to a change in price. As the price for computers doubles, the demand for the good will shrink at a disproportionally great rate.

b) Examples of inelastic goods would allow gasoline, tobacco and automobiles. This is because there is lack of block subsitutes in the market. In the case of gasoline and automobiles, these items are necessities for more or little people.



In the case of tobacco, the habitual nature of its use makes consumers less sensitive to the price of the good. Finally, these goods are broadly delineate. Examples of elastic goods would include Ford Automobilies, restaurant meals, Pepsi. Because these goods or more narrowly defined they have more close subsitutes, which makes demand more elastic. Restaurant meals and Pepsi are both closer to the luxury spectrum for most people.

Q4 The resultant role is b or inelastic demand. As the price of the good goes up, the demand for the good remains constant. This graph and table would be similar to what one might see for a medicine or medicine, as in question 3.

Q5 The answer is a or elastic. The more close substitutes...If you want to get a full essay, order it on our website: Orderessay



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