Question

The price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases from 900,000 bottles to 845,000 bottles. Use the midpoint method to calculate the price elasticity of demand for suntan lotion.

Is demand elasticity or inelastic? How do you know?

What factors might be responsible for you answer in (b) above?

Answer #1

Answer

price elasticity of demand=(change in quantity demanded/average
quantity)/(change in price/average price)

change in quantity demanded=845000-900000=-55000

average quantity demanded=(845000+900000)/2=872500

change in price=8-6=2

average price=(8+6)/2=7

price elasticity of demand=(-55000/872500)/(2/7)

=-0.220630372

the demand is inelastic

because the elasticity is above -1

the elasticity is a measure of the responsiveness of the quantity
demanded because of change in price

------

the factor responsible for inelastic demand is necessary good

and

the factors responsible for the change in price is the shift in the
supply curve because of increase in input price, decrease in the
number of sellers, loss of product by natural disaster etc.

?

When the price of Milo increases from RM2 to RM3, the quantity
demanded decreases from 200 to 150 glasses per month. The demand
for Nescafe increases from 50 to 100 glasses per month. (a)
Calculate the price elasticity of demand using the midpoint
formula. [10 marks] (b) If the price of Milo decreases, what will
happen to the total revenue of Milo? Explain. [8 marks] (c)
Calculate the cross elasticity of demand between Milo and Nescafe.
Based on the answer,...

If the quantity demanded decreases by %15 and the price goes
from 1.25 to 1.75 what is the elasticity of demand? Is it elastic
or inelastic?
If the price goes down by 20% and the quantity sold increases
from 80 to 120 units what is the elasticity of demand? Is it
elastic or inelastic?

question 6 When the price of soda is $1.00 per bottle, the
quantity demanded for bottled water was 500 bottles per day. When
the price of soda increased to $1.10 per bottle, the quantity
demanded for bottled water increased to 600 bottles per day.
Please enter your answers as either positive or negative numeric
answers. Please use a negative sign "-" to indicate a negative
number and do not use parenthesis. (ie. -5 or -5% and not (5) or
(-5%))...

Price Quantity Demanded $0 50 $2 40 $4 30 $6 20 $8 10 a. Using
the midpoint method, calculate the price elasticity of demand
between $4 and $6? b. Between two quantities of 30 to 20, is demand
elastic, inelastic, or unit elastic? Show the work.

16. At a price of $4, quantity demanded is 100; and at a price
of $6, quantity demanded is 120. Using the midpoint formula, the
price elasticity of demand is ________ and demand is ________.
A) 0.1; inelastic
B) 0.45; inelastic
C) -2.2; elastic
D) -10; elastic

1. If the price decreases by 4 percent. As a result, the
quantity demanded increases by 12 percent. The price elasticity of
demand is………...
2. What is the relationship between elasticity and revenue?
3. A 7 percent reduction in the price of a product has zero
effect on the dollar amount of consumer expenditure on the product.
The price elasticity of demand is………
4. What does the price elasticity of demand coefficient
measures?
5. What is characteristic of the demand...

8.
When the price increases by 30 percent and the quantity demanded
drops by 30 percent, the price elasticity of demand is
unitary elastic.
elastic.
perfectly inelastic.
inelastic.
perfectly inelastic.
9.
If the cross-price elasticity of demand between Good A and Good
B is 2 and the percentage change in price of Good A is 5 percent,
what is the percentage change in quantity demanded of Good B?
-3 percent
1.50 percent
10 percent
3 percent
-1.25 percent

Explain the law of demand, and why as price increases quantity
demanded decreases; and, as price decreases, quantity demanded
increases? If taxes were more progressive, would total output be
affected?

Suppose the price of apples increases from $20 to $28, and in
response quantity demanded decreases from 100 to 84. Using the
mid-point formula, what is the price elasticity of demand? (Note:
your answer should be correct to two decimal places; and be sure to
express your answer as a positive number.)

When the price of a cruise rises from $19,500 to $20,500, the
quantity demanded decreases from 2,100 to 1,900 travelers.
Use this information to calculate the price elasticity of
demand.
The percentage change in the price of a cruise is——？
The percentage change in the quantity of cruises demanded is
——？percent.
>>> Report your answer as a positive number.
The price elasticity of demand for cruises is——?

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