You and your wife are making plans for retirement. You plan on living 30 years after you retire and would like to have $75,000 a
nnually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 10% annually.What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent.
Contain Yourself!, a plastic container company, raises the price of its signature Lunchbox container from $3.00 to $4.00 . As a result, the quantity sold drops from 20,000 to 15,000 = unit elastic
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5 = inelastic
Capital Metro decides to increase bus fare rates from $2.00 to $2.21 . Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day = elastic
Explanation:
The demand for unit elasticity is an intermediate situation between an elastic and an inelastic demand curve, in which the price elasticity is equal to one, which means that given variations in the price, the total income does not change (price per quantity). Eslasticity=1
Demand is inelastic when the percentage variation of the quantity demanded is less than the percentage variation of the price. Elasticity less than 1
Elastic demand is when a small variation in the price causes a more than proportional change in the quantity demanded. Elasticity more than 1
