Take a look at Figure 19-2. Work out the calculation for the price elasticity of demand between prices of $ 11 per reservation and $ 10 per reservation to prove that the value is 21.

It is very difficult to find goods with perfectly elastic or perfectly inelastic demand. We can, however, find goods that lie near these extremes. Characterize demands for the following goods as being near perfectly elastic or near perfectly inelastic.

a. Corn grown and harvested by a small farmer in Iowa

b. Heroin for a drug addict

c. Water for a desert hiker

d. One of several optional textbooks in a pass-fail course

Consider panel (a) of Figure 19-1. Use the basic definition of the price elasticity of demand to explain why the value of the price elasticity of demand is zero for the extremely rare situation of the vertical demand curve.

Why does if make sense that there was a negative percentage change in the quantity of cable TV subscriptions demanded in response to an increase in the price of these subscriptions?

When the price of shirts emblazoned with a college logo is , consumers buy per week. When the price declines to , consumers purchase per week. Based on this information, calculate the price elasticity of demand for logo-emblazoned shirts.

In a local market, the monthly price of Internet access service decreases from per account to per account, and the total quantity of monthly accounts across all Internet access providers increases from to . What is the price elasticity of demand? Is demand elastic, unitelastic, or inelastic?