Please answer the following two questions. Keep your answers short but to the point. Only the first...

Question

Please answer the following two questions. Keep your answers short but to the point. Only the first 6 sentences of each question will be considered. This assignment isdue at 23:59pm June 2.
1. The equation for a demand curve is P = 48 – 4Q. What is the elasticity in moving from a quantity of 5 to a quantity of 6? You must show your steps to get credits for this question. Round to one decimal place.
2. “It wouldn’t matter if you raised the price of water to $100 per litre, consumption of water would not change, because people need water.” Does this make any sense? Use a graph in your answer.

please-answer-the-following-two-questions-bu5pwxal.docx

Shakeel · Accepted Answer

Answer 1
P	=	48 – 4Q
Differentiating w.r.t Q
dP / dQ	=	0 – 4
Price elasticity	=	-4
Therefore, the elasticity in moving from a quantity of 5 to a quantity of 6 is -4.
Answer 2
Yes, the consumption of water will not change because water is necessity good.

Please answer the following two questions. Keep your answers short but to the point. Only the first 6 sentences of each question will be considered. This assignment isdue at 23:59pm June 2. 1. The...

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