Economics
SCUSSIUH UUESTIUNS HND PROBLEMS
1. Euppuse that the aduptiun fee at the animal shelter is Il. Besides price, describe a factur that cecul-rl influ- initiallv $l5.EH] and the average number ef arlirnals ence the elasticitv ef demand fur ariilnals frum the
adcrpted per week a.t that price is IDII}. In the face L1-f animal shelter.
in-E mete! l-here le en ieereeee in l-he Pet ee*†Pl-lee‘ eeee e-t E. Describe the relaticrnship between price and tutal the animal shelter fmm $l5‘fle’ tn eelee in ED Percent revenue when demand is elastic {when price rises and
Price inereeeel P1-e’P“’1ente “flee mereeee “Hue that demand is elastic, what happens tn tutal revenue?)
it ie neeeeee-tl” tel re-lee revenue“ fer the shelter‘ eifieee Describe the relaticrnship between price and tcrtal rev-elf the plan wen’}r that the fee increase might decrease Enufl when dflnand is infilasfin
adflpfiune flmugh ll†acmefle luwer Shelter revenues” 3. Fur each Hf the clreices I[a-d] helcrw, decide whether
3. What is the revenue ea_rned bv the shelter fur ani- Hm [hm-[E is mnfld U1. incuntct and Explain why
me-I e‘-lelieeine eefme the fee i-eereeeee Ceteris patihus, a given decrease in the supplv eta
e- e’“PPe’ee enime-l eee-‘P1-lerle fell bi’ lei Pereent in guud will generate a larger decrease in the equilihriuln
respu-nse tu the Si} percent fee increase {tu quantit}, ufthfl guud traded whim
9U animals per week]. “n-“H-“l1at is the new level uftutal 3 demand is flfecfl inflhsflc
revenue earned fru-m ade-ptiens? What is the value ‘1’ demand is Ieelativfllei infllafi
eefthe elasticitv cu-eijficient fur this price and quan- E” demand is relathfellr Elastic
lite change? Ill demand elaeflc DI inelastic? fl. demand increases dt the same tiJne that su l
c. I”ieaw suppese animal adeptinns fall by El] percent ‘ [IE L PP er
creases-
1n respense tr} the Ell] percent fee Increase {tn -51D
annuals PEI .WEE]£}_ what E Hm DEW IEVE1 Hf tfltal 4. If the demand fur n1i]lv-1 is inelastic, will a small
revenue Eflnfld frflm adupfiunsg what is tht, value reductien in the supply uf mill: result in an increase
efthe elasticitv cu-eijficient fur this price and quan- “’1? 3 deeremie 1?-” the tut?-l revenue eelflee e”.r’ ‘”111.-I-1?? titv change? Is demand elastic ur inelastic?