EC 201 Study Guide - Final Guide: Chicory, Motor Oil, Demand Curve
Document Summary
Elasticity: the price of good x decreases from . 10 per unit to sh. 90 per unit. As a result, the quantity demanded increases from 800 units per week to 1200 units per week. What is the own-price elasticity of demand for good x: zero, 0. 5, 1. 0, 2. 0, 2. 75, the own-price elasticity of demand for belgian endive is 1. 5. The price of belgian endive increases by 10%. The quantity of motor oil demanded decreases by 8%. 1: ezekiel"s bar and grill sells onion rings. In an attempt to increase the total revenue that it receives from selling onion rings, ezekiel"s decreases the price of onion rings. The price floor is above the equilibrium price of zbisnys, and the law is enforced. As a result, the quantity that is actually bought and sold will decrease. Due to an earthquake, there is a decrease in the supply of good y (i. e. , the supply curve shifts to the left).
