Question

II-0. Suppose that your demand schedule for Movie is as below.

Price | Quantity Demanded when income =$10,000 | Quantity Demanded when income =$20,000 |

$5 | 50 | 60 |

$7 | 40 | 55 |

$9 | 30 | 50 |

$11 | 20 | 45 |

$13 | 10 | 40 |

Now the movie ticket price is $7 each. If the ticket price rises to $9 each,

Calculate the price elasticity of demand using midpoint method when your income is $10,000.

Step 1

How much is the change in quantity demanded?

What is the mid point of the quantities demanded between before and after change? Step 2 How much is the change in price? What is the mid point of the prices between before and after change? Step 3 What is the price elasticity of demand when the price changes from $7 to $9 and your income is $10,000? calculate - (a/b) / (c/d) What is the price elasticity of demand? |

Calculate the price elasticity of demand using midpoint method when your income is $20,000.

Step 1 -How much is the change in quantity demanded?

What is the mid point of the quantities demanded between before and after change?

Step 2 -How much is the change in price?

What is the mid point of the prices between before and after change?

Step 3-What is the price elasticity of demand when the price changes from $7 to $9 and your income is $20,000?

calculate - (a/b) / (c/d)

What is the price elasticity of demand?

Answer #1

II-1.Suppose that your demand schedule for DVDs is as
beside.
Demand Schedule
Use the mid point method to
calculate your price elasticity
Price
Quantity
Demanded
(income = $10,000)
Quantity
Demanded
(income = $12,000)
of demand as the price of DVDs
increases from $8 to $10, when
$8
40 DVDs
50 DVDs
1.1 if your income is
$10,000:
$10
32
45
$12
24
30
1.2 if your income is $12,000:
$14
16
20
$16
8
12
II-2. Consider public
policy aimed...

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...

Suppose your demand schedule for e-books is the following:
Price
Quantity demanded
(income = € 15,000)
Quantity demanded
(income = € 22,000)
€ 10
48
55
€ 12
40
50
€ 14
32
45
€ 16
24
40
€ 18
16
35
Calculate your price elasticity of demand as the price of
e-books increases from €10 to €12 if (i) your income is €15,000,
and (ii) your income is €22,000. Is it elastic, inelastic or unit
elastic?

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.

4. a) On Tuesday, price and quantity demanded are $7 and 120
units, respectively. A week later, price and quantity demanded are
$6 and 150 units, respectively. What is the price elasticity of
demand between the price of $7 and the price of $6? Use both the
mid-point formula method and the percentage change method. b) The
numbers from both methods are a bit different but their
interpretation is the same. Interpret this elasticity. (i.e. is it
elastic or inelastic...

Calculating the price elasticity of demand: A
step-by-stepguide
Suppose that during the past year, the price of a laptop
computer rose from $2,950 to $3,110. During the same time period,
consumer sales decreased from 468,000 to 296,000 laptops.
Calculate the elasticity of demand between these two
price–quantity combinations by using the following steps. After
each step, complete the relevant part of the table with the
appropriate answers. (Note: For decreases in price
or quantity, enter values in the Change column...

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

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,...

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——?

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....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 15 minutes ago

asked 21 minutes ago

asked 36 minutes ago

asked 46 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago