Question

1.The price of a large pizza decreased from $19.00 to $15.00. As a result, the quantity...

1.The price of a large pizza decreased from $19.00 to $15.00. As a result, the quantity demanded of skateboards increased from 240.00 to 260.00.

2.Using the midpoint formula, what is the percentage change observed for the price of a large pizza? Give your answer to two decimal places.

3. Using the midpoint formula, what is the percentage change observed for the quantity demanded of skateboards? Give your answer to two decimal places.

Homework Answers

Answer #1

(2)

Formula :

Using Mid point method % change in X is given by :

% change in X = ((Xn - Xo)/((Xn + Xo)/2))*100

where Xn = New X and Xo = Old X (or initial X)

Hence, % change in Price = ((Pn - Po)/((Pn + Po)/2))*100

where Pn = New Price = 15 and Po = Old Price = 19

Hence, % change in Price = ((15 - 19)/((19 + 15)/2))*100 = -23.53%.

Hence, Using the midpoint formula, the percentage change observed for the price of Pizza = -23.53%(where negative sign suggest that price decreases)

(3)

% change in Quantity demand = ((Qn - Qo)/((Qn + Qo)/2))*100

where Qn = New Quantity demand = 260 and Qo = Old Quantity demand = 240

Hence, % change in Quantity demand = ((260 - 240)/((260 + 240)/2))*100 = 8%.

Hence, Using the midpoint formula, the percentage change observed for the quantity demanded of skateboards = 8%

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The price of a large pizza decreased from $19.00 to $15.00. As a result, the quantity...
The price of a large pizza decreased from $19.00 to $15.00. As a result, the quantity demanded of skateboards increased from 280.00 to 300.00. Part 1   (1 point) Using the midpoint formula, what is the percentage change observed for the price of a large pizza? Give your answer to two decimal places.     % Part 2   (1 point) Using the midpoint formula, what is the percentage change observed for the quantity demanded of skateboards? Give your answer to two decimal places.     % Part...
The price of a large pizza decreased from $18.00 to $14.00. As a result, the quantity...
The price of a large pizza decreased from $18.00 to $14.00. As a result, the quantity demanded of skateboards increased from 250.00 to 270.00. 1st attempt Part 1   (1 point) See Hint Using the midpoint formula, what is the percentage change observed for the price of a large pizza? Give your answer to two decimal places.     % Part 2   (1 point) See Hint Using the midpoint formula, what is the percentage change observed for the quantity demanded of skateboards? Give your answer...
Consider the following combinations of price and quantity demanded for an unnamed good. These questions ask...
Consider the following combinations of price and quantity demanded for an unnamed good. These questions ask you to perform several percentage change an elasticity calculations. When calculating percentage change, some questions ask you to use the traditional formula and some ask you to use the midpoint formula. For clarity, these two formulas are given below. The values you calculate should be between -100 and 100 (not -1 to 1). Please include the sign (if negative) in all of your responses....
Consider the following combinations of price and quantity demanded for an unnamed good. These questions ask...
Consider the following combinations of price and quantity demanded for an unnamed good. These questions ask you to perform several percentage change an elasticity calculations. When calculating percentage change, some questions ask you to use the traditional formula and some ask you to use the midpoint formula. For clarity, these two formulas are given below. The values you calculate should be between -100 and 100 (not -1 to 1). Please include the sign (if negative) in all of your responses....
The price of peanut butter increases from $3.50 to $4.00 per jar, and the quantity of...
The price of peanut butter increases from $3.50 to $4.00 per jar, and the quantity of jelly demanded falls from 35 jars to 28 jars. Using the midpoint formula, calculate the cross-price elasticity of demand. Report your answer to two decimal places.
As the price of pancakes decreased from $3 to $1 during winter, the quantity demanded for...
As the price of pancakes decreased from $3 to $1 during winter, the quantity demanded for maple syrup increased from 2 oz. to 3 oz. Calculate the cross-price elasticity of demand for maple syrup with respect to pancakes.  (Points: 5) Provide the correct formula Show the procedure State the correct answer, including correct sign and magnitude Interpret your elasticity value.  (Points: 5) Are pancakes a substitute or complementary good?  (Points: 4)
Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows: Price Quantity...
Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is   if your income is $20,000 and   if your income is $24,000. If the price of...
If the price for gasoline changes from $4 to $3 and the quantity of miles driven...
If the price for gasoline changes from $4 to $3 and the quantity of miles driven changes from 400 to 660 units, what would the elasticity of demand be for gasoline using the midpoint formula. Record your answer as a positive number to two places after the decimal.
The market for pizza has the following demand and supply schedules: Price Quantity demand Quantity supplied...
The market for pizza has the following demand and supply schedules: Price Quantity demand Quantity supplied 4$ 100 25 5$ 75 50 6$ 60 60 7$ 40 90 8$ 25 100 a. Graph the demand and supply curves? b. What is equilibrium price and quantity? c. If the actual price in the market is 5$, would this create a surplus or shortage? What is the amount of this surplus or shortage? What shall sellers do in this case? d. If...
Suppose the price of apples increases from $20 to $28, and in response quantity demanded decreases...
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.)