Question

Price Quantity Demanded $0 50 $2 40 $4 30 $6 20 $8 10 a. Using the...

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.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer (a) price elasticity of demand is 1

(b) Demand is unit elastic

Unit elastic demand, the proportion change in demand is equal to the proportion change in price.

All the calculations are attached below

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Table A Price Quantity $100 0 $80   10 $60 20 $40 30 $20 40 $0 50...
Table A Price Quantity $100 0 $80   10 $60 20 $40 30 $20 40 $0 50 Question 12: Refer to Table A. Using the midpoint method, if the price falls from $40 to $20, calculate the value of the price elasticity of demand? What is the type of demand? Question 14 If the price elasticity of demand for a good is 8, then if the price decreased by 6 percent, what would happen to the quantity demand?
16. At a price of $4, quantity demanded is 100; and at a price of $6,...
16. At a price of $4, quantity demanded is 100; and at a price of $6, quantity demanded is 120. Using the midpoint formula, the price elasticity of demand is ________ and demand is ________. A) 0.1; inelastic B) 0.45; inelastic C) -2.2; elastic D) -10; elastic
4. Calculate the price elasticity of demand using the information provided in the chart below. Quantity...
4. Calculate the price elasticity of demand using the information provided in the chart below. Quantity Demanded Price Substitute/ Complement Elasticity Elastic/Unit/Inelastic 540 10 980 20 760 30 1,100 40
II-0. Suppose that your demand schedule for Movie is as below. Price Quantity Demanded when income...
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...
8. When the price increases by 30 percent and the quantity demanded drops by 30 percent,...
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 is $2, quantity demanded is 10. When the price rises to $8, quantity...
When the price is $2, quantity demanded is 10. When the price rises to $8, quantity demanded falls to 2. What is the value of the elasticity of demand? Is it elastic or inelastic?
Table: Lunch Price Quantity Demanded $10 0 $9 10 $8 20 $7 30 $6 40 $5...
Table: Lunch Price Quantity Demanded $10 0 $9 10 $8 20 $7 30 $6 40 $5 50 $4 60 Reference: Ref 13-7 Table: Lunch (Table: Lunch) Use Table: Lunch. This table shows market demand for picnic lunches for people taking all-day rafting trips on the river. Suppose that the marginal cost and average cost of each lunch are a constant $4 for all firms in the market. If Joe owns one of many firms in a competitive industry, what price...
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?
USE TABLE 2 FOR QUESTIONS 24-30 PRICE PER UNIT QUANTITY DEMANDED PER WEEK $12.00 25 $11.50...
USE TABLE 2 FOR QUESTIONS 24-30 PRICE PER UNIT QUANTITY DEMANDED PER WEEK $12.00 25 $11.50 30 $11.00 35 $10.50 40 $10.00 45 $9.50 49 $9.00 50 $8.50 52 $8.00 53 $7.50 54 $7.00 55 24. Using average values what is the price elasticity of demand when price rises from $7.50 to $8? A) 3.45 B) 2.85 C) .70 D) .29 25. Using averages what is the price elasticity of demand when price changes from $8.50 to $9? A) .69...
Suppose your demand schedule for e-books is the following: Price Quantity demanded (income = € 15,000)...
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT