Question

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.

Answer #1

(2)

Formula :

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

% change in X = ((X_{n} - X_{o})/((X_{n}
+ X_{o})/2))*100

where X_{n} = New X and X_{o} = Old X (or
initial X)

Hence, % change in Price = ((P_{n} -
P_{o})/((P_{n} + P_{o})/2))*100

where P_{n} = New Price = 15 and P_{o} = 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 = ((Q_{n} -
Q_{o})/((Q_{n} + Q_{o})/2))*100

where Q_{n} = New Quantity demand = 260 and
Q_{o} = 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%

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 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 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 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 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 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 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
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
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 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.)

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