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1. Explain the following statements, the use of tables, diagrams and graphs will greatly enhance the assignment.

19 / 01 / 2019 Economics

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Economics Major Assessment.
1.    Explain the following statements, the use of tables, diagrams and graphs will greatly enhance the assignment.
a.    When bad weather ruins a crop of bananas in Queensland the price of bananas rises in grocery outlets around the country. (10%)
b.    Accommodation in motels, hotels and caravan parks is cheaper during the off-season. (10%)
c.    If the price of oil rises substantially and remains high the price of used V8 cylinder cars falls. (10%)
d.    Consider the hypothetical demand schedule below. (10%)
Cinema tickets
Price of tickets $    Quantity demanded    Elasticity coefficient
25    20    
20    40    
15    60    
10    80    
5    100    

What is the price elasticity of demand between price = $25 and $20
What is the price elasticity of demand between price = $20 and $15
What is the price elasticity of demand between price = $15 and $10
What is the price elasticity of demand between price = $10 and $5


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