Question
The table below provides price and output information for Angela’s weekly demand curve for cheeseburgers. Use...
The table below provides price and output information for
Angela’s weekly demand curve for cheeseburgers. Use the information
in the table to answer the questions below, and give all answers to
two decimals.
| Price (per cheeseburger) |
Number of Cheeseburgers Demanded (per week) |
| $8 | 3 |
| $6 | 5 |
a. Calculate the price elasticity of demand if the price falls from $8 to $6. Do not use the midpoint formula.
b. Calculate the price elasticity of demand if the price increases
from $6 to $8. Do not use the midpoint formula.
c. Use the midpoint method to calculate the price elasticity of
demand.
Homework Answers
Answer #1
Answer:
(a) Price elasticity of demand = - 2.66
(b) Price elasticity of demand = - 1.2
(c) Price elasticity of demand = - 1.75
EXPLANATION:
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
= 
= 
= 
= - 2.66
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
=
= 
= 
= - 1.2
Price elasticity of demand(midpoint method)
= 
= 
= 
= - 1.75
Not the answer you're looking for?
Similar Questions
1.Price elasticity of demand is defined as: Multiple Choice a.the slope of the demand curve. b.the...
1.Price elasticity of demand is defined as:
Multiple Choice
a.the slope of the demand curve.
b.the slope of the demand curve divided by the price.
c.the percentage change in price divided by the percentage
change in quantity demanded.
d.the percentage change in quantity demanded divided by the
percentage change in price.
2. The Midpoint Method for Elasticity uses which of the
following?
Multiple Choice
a.Average percentage change in price only
b.Average percentage change in quantity only
c.Average percentage change in...
The following data below represent the demand schedule for good X. Price ($) Quantity Demanded 22...
The following data below represent the demand schedule for good
X.
Price ($)
Quantity Demanded
22
32
18
48
14
64
10
80
8
96
Use the midpoint formula to determine the price elasticity of
demand at the following price points:
$22 and $18
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.
The price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases...
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?
The table below shows the demand and supply schedules for gizmos. a. Use the information in...
The table below shows the demand and
supply schedules for gizmos.
a. Use the information in the table
to determine the market equilibrium quantity and price of
gizmos.
b. Suppose the government wants to
set a quota that states that only 8 gizmos can be exchanged. What
is the demand price and what is the supply price at this quota
limit?
c. At the quota limit of 8 gizmos,
what is the quota rent available to sellers of gizmos?
d....
The price of a new portable CD player falls from $100 to $90. The quantity of...
The price of a new portable CD player falls from $100 to $90.
The quantity of CD players demanded rises from 15,000 per year to
20,000 per year. Use the midpoint formula to calculate the price
elasticity of demand for portable CD players. Is the demand
elastic, inelastic, or unit elastic?
In each case below, what is the value of the price elasticity of demand? Is demand...
In each case below, what is the value of the price elasticity
of demand? Is demand perfectly inelastic, inelastic, unit elastic,
elastic or perfectly elastic?
Price falls by 10%, quantity demanded rises by 8%
Price rises by 3%, quantity demanded falls by 3%
Price rises by 1%, quantity demanded falls by 5%
Price rises by 5%, quantity demanded collapses to zero
Price falls by 2%, quantity demanded does not change
2. The following table shows three demand schedules for a person who likes to play football...
2. The following table shows three
demand schedules for a person who likes to play football and/or go
swimming. In scenario S1, his income is $100,000 per year and
swimming cost $18 each. In scenario S2, his income is also $100,000
per year, but the price of swimming rises to $22 per round. And in
scenario S3, his income increases to $140,000 per year while
swimming cost $22 per round.
A. Use data under S1 and S2 to
calculate the...
Determine the price elasticity of demand, the cross-price elasticity of demand or the income elasticity in...
Determine the price elasticity of demand, the cross-price
elasticity of demand or the income elasticity in the following
scenarios.
a. Consider the market for coffee. Suppose the price rises from
$4 to $6 and quantity demanded falls from 120 to 80. What is price
elasticity of demand? Is coffee elastic or inelastic?
b. John’s income rises from $20,000 to $22,000 and the quantity
of hamburger he buys each week falls from 2 pounds to 1 pound. What
is his income...
The following table provides the demand for three goods (A, B, and C) at two prices...
The following table provides the demand for three goods (A, B,
and C) at two prices for good A.
Price of GOOD A
Quantity Sold of A
Quantity Sold of B
Quantity Sold of C
$30
1400
400
500
$40
700
210
825
a) Calculate the midpoint cross-elasticity of demand between
good A and B. Are these goods substitutes or complements?
b) Calculate the midpoint cross elasticity of demand between
good A and C. Are these goods substitutes or complements?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 2 minutes ago
asked 2 minutes ago
asked 2 minutes ago
asked 26 minutes ago
asked 28 minutes ago
asked 39 minutes ago
asked 40 minutes ago
asked 43 minutes ago
asked 45 minutes ago
asked 56 minutes ago
asked 57 minutes ago
asked 57 minutes ago