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Homework answers / question archive / If the price elasticity of demand for aspirin equals -3 then O the demand for aspirin is elastic
If the price elasticity of demand for aspirin equals -3 then O the demand for aspirin is elastic. O the demand for aspirin is inelastic. O aspirin is a normal good. O aspirin has few substitutes. Changes in which of the following do not cause the demand curve to shift? the price of a complement good. the price of the good. O the price of a substitute good. buyers' incomes
1) The correct option is A. the demand for aspirin is elastic.
Because, in the price elasticity of demand (E??????p?????) the negative sign is ignored and only the magnitude of the value is considered. So, the price elasticity is 3.
The condition of Price elasticity of demand (E??????p???) is followed
If, Ed = 1(unitary elasticity)
If, E????d < 1(inelastic)
If, E??????d > 1(elastic)
Here the price elasticity demand is greater than 1 so, the demand for aspirin is elastic.
2) The correct option is B. The price of the good.
Because if demand changes with some other factor like substitute good price, complementary good price and buyer’s income then the demand curve is shifted and when the demand changes due to change in price of the good then her the demand increases or decreases, but does not shift. So, here the price of the goods is not a cause for the shift of the demand curve.
