Sophia Microeconomics Unit 2 Challenge 2 Latest 2022 Rated A

Which of the following statements is the best example of inelastic demand? d.) Tom bought banners sold in town before; they were high quality, so he buys them there again, despite an increase in price. Pedro had type ...

Which of the following statements is the best example of inelastic demand? d.) Tom bought banners sold in town before; they were high quality, so he buys them there again, despite an increase in price. Pedro had type I diabetes and had to remember to maintain normal levels of blood glucose, whether that required insulin injections, snacking on sugary foods or eating whole wheat bagels and fruit. Pedro did not prefer any particular fruit over another. If a certain type of fruit was on sale, he would always choose the sale price. When it comes to sugary snacks and whole wheat bagels, there were certain brands that he liked to have more than others, and he might spend a little more money to get the brands he preferred. His diabetes medication (insulin) was an item that he couldn't live without, and Pedro would always purchase it, regardless of the price. Which of the following items would be a more elastic demand for Pedro? c.) Fruit If the price of medication doubles, and the quantity demanded remains unchanged, this good is said to be __________. a.) perfectly inelastic Diet Coke has an elasticity of demand of 1.6, which makes it __________. a.) elastic When using the midpoint formula to calculate elasticity of demand, the answer will always be a negative number. This is due to the __________. c.) law of demand Arc price elasticity measures which of the following? This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:23:11 GMT -05:00 https://www.coursehero.com/file/66563703/Micro-Unit-2-Challange-2docx/ c.) Percent change in quantity divided by the percent change in price One month ago, Olivia purchased 300 pages of printer paper at $1 per sheet. Today she learned that the price of the printer paper had risen to $1.50 per sheet, so she purchased only 100 sheets. Using the graph of printer paper elasticity below and the midpoint formula, the own-price elasticity is __________. a.) -2.5 John was ordering orange cones to use for soccer drills during practices. If John decided to purchase cones now, he would buy 10 sets at $5 per set. If he decided to purchase the cones at a later time when the demand decreased, he would purchase 14 sets at $3 per set. Using the mid-point formula, the own-price elasticity of the soccer cones is __________. a.) -0.67 Trent needed pinnies for the lacrosse team to wear during scrimmages and called a local supplier and was told that he could purchase pinnies for $10 each. He asked the supplier to hold five pinnies for him to purchase. However, when Trent arrived at the store a few days later, he found the price of the pinnies had increased to $12. Due to the price increase, Trent only purchased four pinnies. Using the mid-point formula, Trent's own-price elasticity of the pinnies is __________. b.) -1.22 If the cross-price elasticity of demand is positive, the goods are said to be __________. b.) substitutes The cross-price elasticity of demand for soda and pretzels is -0.6. This study source was downloaded by 100000831988016 from CourseHero.com on 06-22-2022 15:23:11 GMT -05:00 https://www.coursehero.com/file/66563703/Micro-Unit-2-Challange-2docx/ Therefore, soda and pretzels must be __________ goods. d.) complementary On his most recent trip to the running store, Andy noticed that the water bottles for his favorite hydration belt were on sale. They were usually priced at $8, but they were on sale for $5. The store owner told Andy that he was surprised that people were not only buying more water bottles due to the sale, but also more of the hydration belt, even though the belts were not on sale. Based on the scenario above, what type of goods are the water bottles and hydration belts? b.) Complements Juan raised the price of a certain brand of running shorts in his store from $30 to $35. Once he did this, Juan noticed that customers were purchasing fewer shirts to go with the shorts. Last week, he sold 40 shirts, which decreased to 20 after the price increase with the shorts. Using the mid-point formula, the cross-price elasticity is __________ and the goods are __________. a.) -4.33; complements A store recently marked a hydration belt on sale, lowering the price from $20 to $12. The store also sells a hydration bottle, which has a similar concept to the belt, except that a runner can hold it in his or her hand with a strap while running. When the store owner lowered the price of the hydration belt, he noticed that the quantity of hydration bottles that he sold decreased from seven the previous we