Question 8If a 15 percent decrease in the price of sapphires causes a 20 percent decrease in the quantity of diamonds demanded, then the cross-price elasticity of demand between sapphires and diamonds is:1 point 0.75 4.001.33 0.60

he income elasticity of demand for jewelry is 2. Other things equal, a 10% increase in consumer income will ___________ the quantity of jewelry demanded by ________Multiple Choicedecrease; 20%.increase; 5%.decrease; 5%.increase; 20%.

Question 2If demand is elastic, then a 5% increase in price will cause:1 pointa decrease in quantity demanded of more than 5%.a decrease in quantity demanded of less than 5%.no change in quantity demanded.a decrease in quantity demanded of exactly 5%.

2. If the elasticity of demand for a commodity is estimated to be 1.5, then a decrease in price from $2.10 to $1.90 would be expected to increase daily sales by:A. 50%B. 1.5%C. 5%D. 15%

The relation between the weight of a diamond and its cost is linear. In looking at two diamonds, we find that one of the diamonds weighs 0.7 carat and costs $3672, while the other diamond weighs 0.8 carat and costs $4568. Linear function that relates the price of a diamond (P) to its weight (x) is P(X) = 8960x - 2600. Interpret slope in context.Group of answer choicesFor every additional carat in weight of a diamond, the price goes down $8960.For every additional carat in weight of a diamond, the price goes down by $2600.For every additional carat in weight of a diamond, the price goes up by $2600.For every additional carat in weight of a diamond, the price goes up $8960.

A firm increases its price from $8 to $12 and sees demand for the product fall by 20%. What would the price elasticity of demand be for this product? A 0.4 B 1 C 2.5 D 1.5