Question

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.)

Answer #1

Price |
Quantity
Demanded |

$20 | 100 |

$28 | 84 |

Price elasticity of demand = % change in Quantity Demanded / % change in Price

% change in Quantity Demanded = Q2 - Q1 / (Q1+Q2/2) x 100

% change in Quantity Demanded = 84 - 100 / (100+84/2) x 100

% change in Quantity Demanded = -16/ 92 x 100

% change in Quantity Demanded = -17.39%

% change in Price = P2 - P1 / (P1+P2/2) x 100

% change in Price = 28 - 20 / (20+28/2) x 100

% change in Price = 8 / 24 x 100

% change in Price = 33.33%

Price elasticity of demand = % change in Quantity Demanded / % change in Price

Price elasticity of demand = -17.39 / 33.33

Price elasticity of demand = 0.52

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——?

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?

The price of suntan lotion increases from $6 to $8 per bottle
and quantity demanded decreases from 900,000 bottles to 845,000
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Is demand elasticity or inelastic? How do you know?
What factors might be responsible for you answer in (b)
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Consider the market demand curve for apples, which relates the
quantity demanded of apples (in
thousands of bushels) to various prices of apples. Suppose
that the price elasticity of demand for apples is -2.
If the price of apples increases by 3 percent, then by how
much will the quantity demanded of apples
decrease?
Select one:
a. by 2 percent
b. by 6 percent
c. by 6 thousand bushels
d. by 2 thousand bushels

Explain the law of demand, and why as price increases quantity
demanded decreases; and, as price decreases, quantity demanded
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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...

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100 pounds, the elasticity of demand is : (1 point)
a. greater than 1
b. equal to -5
c. equal to -20
d. cannot be determined without additional information.
2.If quantity supplied responds only slightly to a change in
price, then: (1 point)
a. Supply is elastic
b. An increase in price will shift the supply curve to a large
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c. Supply is inelastic
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