Explore BrainMass
Share

Applications of price elasticity concept

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Assume that the demand for plastic surgery price is inelastic. Are the following statements true or false? Explain your answer

1.When the price of plastic surgery increases, the number of operations decreases.

2.The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.

3.Changes in the price of plastic surgery do not affect the number of operations.

4.Quantity demanded is quite responsive to changes in price.

5.The marginal revenue of another operation is negative.

© BrainMass Inc. brainmass.com September 21, 2018, 4:00 pm ad1c9bdddf - https://brainmass.com/economics/economic-policy/applications-of-price-elasticity-concept-531654

Solution Preview

1.When the price of plastic surgery increases, the number of operations decreases.
True, basic principal of demand says that price and quantity demanded have an inverse relationship.

2.The percentage change in the price of plastic surgery is less than the ...

Solution Summary

Solution determines if the given statements are true or false based upon the information provided.

$2.19