Effects when rental price and quantity demand raise

When the rental price of DVDs start from $2.50 to $.99 and the quantity demanded raises from 510 to 820 in that case the price elasticity of demand to rent DVDs is: (w) perfectly elastic. (x) perfectly inelastic. (y) relatively elastic. (z) relatively inelastic.

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Problem regarding Bilateral Monopoly

The Bilateral monopoly models would be most suitably employed to analyze the negotiations among: (1) Le-Bron James, an all-star NBA basketball player and the Cleveland Cavaliers. (2) A newly hired clerk at Wal-Mart and the Wal-Mart Human Resources Dep

Q : Wage Discrimination problem Both level

Both level of the employment by a firm and the average rate of monopsonistic exploitation of labor are raised when a firm is capable to: (1) Outsource by hiring low productive workers in the foreign countries. (2) Replace the workers with automation by an industrial r

Q : Negatively-sloped demand curve for

A firm which cannot price discriminate although which faces a negatively-sloped demand curve for output: (1) has a marginal revenue curve which is always below which demand curve. (2) will never knowingly produce at a level of output where the price e

Q : Absolute values in price elasticity The

The form of elasticity which economists commonly state like an absolute value since this is classically negative is the: (1) price elasticity of supply. (2) income elasticity of demand. (3) price-cross elasticity of supply. (4) price-

Q : Family Allowance Plans for Payments

Family Allowance Plans [FAPs] as like those common in many European nations give: (w) incentives for couples to live together without marriage due to the punitive tax rates. (x) payments that are roughly enough to feed and clothe each child in a famil

Q : Monopsonist in the labor market I have

I have a problem in economics on Monopsonist in the labor market. Please help me in the following question. The monopsonist in labor market faces the: (1) Market demand for the labor. (2) Household’s demand for the labor. (3) Household’s s

Q : Horizontal demand curve facing purely

The demand curve facing a purely competitive firm is: (w) horizontal. (x) vertical. (y) downward sloping. (z) the horizontal summation of individual demand curves. Can someone explain/help me with best solution abo

Q : Free Trade Agreement Tell me the answer

Tell me the answer of this question. Critics of the North American Free Trade Agreement (NAFTA) falsely feared that it would: A) increase the flow of illegal Mexican immigrants to the United States. B) cause the European Union and Japan to raise trade barriers against

Q : Kinked demand curves and sticky prices

Sticky prices within oligopoly markets are: (w) predicted by the kinked demand curve model. (x) substantiated by many statistical studies. (y) most common for highly differentiated products. (z) a result of price discrimination.

Q : Different forms of capital account

Different forms of capital account transactions: A) Private Transactions: There are transactions which affect the liabilities and assets of individuals.

Discover Q & A

Leading Solution Library

Avail More Than 1438941 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1929530
Asked

3,689

Active Tutors

1438941

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment