oliva NAME_O in sales from 2,880 to 1,920 per day. The price ela 0.625 PRINT LAST NAME, FIRST for this newspaper. C. d. 1.6 1.4 An increase in the price of a small town nel 7. At a typical store,...

Question 10

Extracted text: oliva NAME_O in sales from 2,880 to 1,920 per day. The price ela 0.625 PRINT LAST NAME, FIRST for this newspaper. C. d. 1.6 1.4 An increase in the price of a small town nel 7. At a typical store, there are dozens of choices on the breakfast cereal aisle. Therefore, t price-elastic since consumers can switch to corn flakes or shredded wheat if price-inelastic since consumers can switch to corn flakes or shredded wheat if price-elastic since consumers who prefer Cheerios would never consider price-inelastic since it would not be possible for the price of corn flakes or midpoint formula) is 0.25 b. Use the a. demand for Cheerios is expected to be: a. the price of Cheerios increases. b. the price of Cheerios increases. C. shredded wheat to remain the same when the price of Cheerios is increasing. When the price of gasoline goes up, the resulting fall in consumption is likely to be larger switching to corn flakes or shredded wheat. d. after a longer period of time has passed because consumers have found ways to conserve. 9. For this reason, the demand for gasoline is thought to be: more elastic in the long run than in the short run. more inelastic in the long run than in the short run. highly elastic in both the short run and the long run. highly inelastic in both the short run and the long run. a. b. C. Use the graph below to answer question 10. Price $12.50 $7.50 Quantity 160 240 10. As price falls from $12.50 to $7.50 and quantity demanded increases from 160 to 240 units, the price elasticity of demand, calculated using the midpoint formula, is equal to: 50 percent divided by 40 percent, which is 1.25 so demand is elastic. 50 percent divided by 40 percent, which is 1.25 so demand is inelastic. 40 percent divided by 50 percent, which is 0.8 so demand is elastic. 40 percent divided by 50 percent, which is 0.8 so demand is inelastic. a. b. C. d. Chapter 5 Assignments 100 8.