Ask Question
BusinessBusiness
12 September, 00:27

Adam and barb go to the store to purchase some lottery tickets. without looking at the price, adam says "i'll take 10 lottery tickets," and barb says "i'll take $10 worth of lottery tickets." what is each person's price elasticity of demand for lottery tickets

+2
Answers (1)
  1. 12 September, 02:26
    0
    Price elasticity of demand for Adam=0

    Price elasticity of demand for Barb=1

    Explanation:

    Price elasticity of demand = %age change in demanded QTY / %age change in demanded price

    The price is not important for Adam, and he demands a fixed quantity, hence his demand curve is vertical. A perfectly vertical demand curve is can inelastic demand curve and has price elasticity = 0

    The quantity is not important for Barb, and he demands a fixed price, hence his demand curve is horizontal. A perfectly horizontal demand curve is has price elasticity = 1
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Adam and barb go to the store to purchase some lottery tickets. without looking at the price, adam says "i'll take 10 lottery tickets," and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
In the context of experimental research, the logic of random assignment is
Answers (1)
What are some risks of adding a new product?
Answers (1)
Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use the building as-is for operations but immediately razes the shed at a cost of $5,000 minus scrap recovery of $1,000.
Answers (1)
By not focusing on quality, starbucks failed to deliver on which aspect of aligning goals with value?
Answers (1)
What is a highly unreasonable omission or misrepresentation involving an extreme departure from the standards of care that a problem observe under the circumstances.
Answers (1)
New Questions in Business
Paul Davis wants to deposit a lump sum of money today for a vacation that he plans to take to Asia after he graduates from Graduate School. Which formula should he use to determine the amount of money he will have available for his vacation?
Answers (1)
invisible hand in Adam Smith's theory turns self-directed gain into social and economic benefits for all. true false
Answers (1)
When do you need statistics? Group of answer choices You never actually need statistics When you want to know if one group differs absolutely from another group When we subsample from a population When we want to establish a null hypothesis
Answers (1)
The fungal division needs 10,000 plates of potato dextrose agar annually. Currently, the fungal division purchases them from Arizona Lab Supplies for $25.00 for a unit of 10 plates because the media division has no excess capacity.
Answers (1)
Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will increase the demand for loanable funds, drive up interest rates, and leave less loanable money available for consumers and
Answers (1)
Home » Business » Adam and barb go to the store to purchase some lottery tickets. without looking at the price, adam says "i'll take 10 lottery tickets," and barb says "i'll take $10 worth of lottery tickets.
Sign Up Forgot Password?