# Economics 103 ETSU Economics Questions

Description

pleas answer all questions carefully.1) Is the following statement true or false? Explain.The own price elasticity is constant for linear demand.2) Suppose you are a consultant for a Detroit Ford dealer. Let the market price be at \$25,000 for a Ford Taurus. If the dealer has a stock of unsold 2020 Ford Taurus, and you know that the elasticity of demand for this dealer’s cars is 1.5, would you recommend any change in price? Why?

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Is the following statement true or false? Explain.
The own price elasticity is constant for linear demand.
CALA Rubric (2) (16)
Criteria
Ratings
Pts
1 pts
Comprehension:
comprehend concepts relevant to questions
5 pts
90th
Percentile
4 pts
75th
Percentile
3 pts
Median
2 pts
25th
Percentile
O pts
Missing
10th
Percentile
5 pts
4 pts
Application:
Student’s answer reflects ability to apply
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
1 pts
Logic:
Student’s answer reflects ability to build a
logical explanation.
5 pts
90th
Percentile
4 pts
75th
Percentile
3 pts
Median
2 pts
25th
10th
Percentile
O pts
Missing
5 pts
Percentile
3 pts
1 pts
Accuracy:
accurately derive a conclusion.
5 pts
90th
Percentile
4 pts
75th
Percentile
Median
2 pts
25th
Percentile
10th
Percentile
O pts
Missing
5 pts
Total Points: 20
Suppose you are a consultant for a Detroit Ford dealer. Let the market price be at \$25,000 for a Ford Taurus. If the
dealer has a stock of unsold 2020 Ford Taurus, and you know that the elasticity of demand for this dealer’s cars is
1.5, would you recommend any change in price? Why?
CALA Rubric (2) (17)
Criteria
Ratings
Pts
5 pts
4 pts
1 pts
3 pts
Median
Comprehension:
comprehend concepts relevant to questions
90th
Percentile
75th
Percentile
2 pts
25th
Percentile
10th
Percentile
O pts
Missing
5 pts
4 pts
2 pts
1 pts
Application:
Student’s answer reflects ability to apply
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
25th
Percentile
10th
Percentile
O pts
Missing
5 pts
4 pts
Logic:
Student’s answer reflects ability to build a
logical explanation.
5 pts
90th
Percentile
3 pts
Median
75th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing
5 pts
5 pts
Accuracy:
accurately derive a conclusion.
4 pts
75th
Percentile
3 pts
Median
90th
Percentile
2 pts
25th
Percentile
1 pts
10th
Percentile
O pts
Missing