Explore BrainMass
Share

Explore BrainMass

    Determinants of price elasticity

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

    1) Define utility and marginal utility?
    2) What is the price elasticity of demand?
    3) Relate price elasticity to changes in total revenue with a price increase?
    4) List and discuss the determinants of price elasticity.
    5) How do normal and inferior goods differ?
    6) Define technological (or production) efficiency?
    7) Differentiate between fixed costs and variable costs?
    8) Differentiate between explicit and implicit costs?

    Questions Shiller text The economy today isbn 0-07-297911-9 - 10th edition

    Chapter 20
    Ques. 9 If you owned a movie theater, would you want the demand for movies to be elastic or inelastic?

    Extra Question:
    NPD INTELECT Market Tracking is a leading provider of sales tracking services for the consumer electronics, home appliance, information technology and imaging industries. Use the following data to answer the questions below.

    Sales and Price data for DVD players
    Price Sales
    1998 $504 697,432 units
    2001 $192 4,257,913 units

    a. Assuming nothing else changed during the time period of the data except product price, use the data provided in the press release to calculate the price elasticity of demand for DVD players between 1998 and 2001.
    b. Interpret the value that you calculated for part 'a'.

    Chapter 21
    Ques. 2 Suppose all your friends offered to help wash your car.
    Would marginal physical product decline as more friends helped? Why or why not?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:29 pm ad1c9bdddf
    https://brainmass.com/economics/elasticity/determinants-of-price-elasticity-58897

    Solution Preview

    1) Define utility and marginal utility?
    2) What is the price elasticity of demand?
    3) Relate price elasticity to changes in total revenue with a price increase?
    4) List and discuss the determinants of price elasticity.
    5) How do normal and inferior goods differ?
    6) Define technological (or production) efficiency?
    7) Differentiate between fixed costs and ...

    Solution Summary

    This gives the determinants of price elasticity

    $2.19