Question

suppose when the orize of starbucks coffe beans goes from $1 to $1.20 per pund, production...

suppose when the orize of starbucks coffe beans goes from $1 to $1.20 per pund, production increases from 90 million pounds if coffee beans to 160 million pound per year.

-using midpoint method , calcualate the % change in quanity/ supplied.
-explain results
-calcualte change in revenue
- how much is due to the price? how much is due yi quanity effects?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The percentage change in quantity/price is 3 means the coffee beans is highly elastic good ;change in price will change the demand for goood drastically and here the quantity effect dominates the price effect of the good.

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
A large  country imports salt. With free trade at the world price of $10 per pound, the...
A large  country imports salt. With free trade at the world price of $10 per pound, the country's national market is as follows: Domestic production: 100 million pounds per year Domestic consumption: 200 million pounds per year Imports: 100 million pounds per year The country's government now decides to impose a quota that limits salt imports to 40 million pounds per year. With the import quota in effect, the domestic price rises to $13 per pound but as this is a...
A large country imports salt. With free trade at the world price of $10 per pound,...
A large country imports salt. With free trade at the world price of $10 per pound, the country's national market is as follows: Domestic production: 100 million pounds per year Domestic consumption: 200 million pounds per year Imports: 100 million pounds per year The country's government now decides to impose a quota that limits salt imports to 40 million pounds per year. With the import quota in effect, the domestic price rises to $13 per pound but as this is...
5. Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3...
5. Suppose that Bobo purchases 1 pizza per month when the price is $19 and 3 pizzas per month when the price is $15. What is the price elasticity of Bobo’s demand curve? Multiple Choice a.0.235 b.2.00 c.4.25 d.6.33 6. Suppose that Mimi plays golf 5 times per month when the price is $40 and 4 times per month when the price is $50. What is the price elasticity of Mimi’s demand curve? Multiple Choice a.0.1 b.0.8 c.10.0 d.1.0 7....
British consumption of coffee has mushroomed over the years, leading to an increase in branded and...
British consumption of coffee has mushroomed over the years, leading to an increase in branded and independent cafes across the country and the rising popularity of pod and espresso machines for the kitchen. In fact, the rise in artisan coffee shops and home brewing systems has also increased expectations of quality, prompting chain stores to introduce specialist drinks to their menus. Dreams Cafe is one such shop that has capitalized on this revolutionary coffee-drinking habit of millions of people. It...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources...
Please Check the wrong ones! 1. Which of the following best describes scarce resources? a. Resources for which the quantity that people want exceeds the quantity that is freely available b. Resources that most people cannot afford to buy c. Resources for which the quantity demanded is the same for all economic agents d. Resources that can only be distributed efficiently by the government 2. Which of the following statements is true of models? a. It is more important for...
Please answer all 9 questions with explanation. Thank you On May 8, 1984, Hannah Eisenstat graduated...
Please answer all 9 questions with explanation. Thank you On May 8, 1984, Hannah Eisenstat graduated from Louisiana State University. She set to work opening a coffee shop in Baton Rouge called HannaH and found a perfect location in a new development. Using a $50,000 inheritance to finance the venture together with her own sweat equity, she started the business on August 1, 1984 as a sole proprietorship. The shop was profitable in the first year. Hannah found, however, that...
Read the following article about waste stream conversion and explain (limit yourself to maximum 150 words)...
Read the following article about waste stream conversion and explain (limit yourself to maximum 150 words) how waste stream conversion works, what sorts of products are being or could be produced, and what you think are the economic benefits for the companies involved. (For example, how Cook Composites and Polymers Co. improves resource efficiency and process quality in its manufacturing process by developing a waste by-product into a new product.) https://livepaperhelp.com/blog/college-paper-on-cook-composites-and-polymers-co CCP is a company that produces various products like...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the consumer's gain from exchange c.the market price of a good or service d. the equilibrum quantity 3. trade permitts countries to a. consume more than they capable of producing b.produce based on their comparative advantage c.specialize more fully d.all of above 4. which of the following dose not impact how elastic supply is? a. whether the supply is local or global b.the share of...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions...
Closed book and closed notes. 3. Basic Calculators are permitted. 4. Read all instructions and questions carefully. 5. Show all your work. 6. Please place your Coquitlam College Identification Card face up and visible on your desk. 7. Electronic devices including cellular phones must be turned off and put away during the exam. 8. Any student who has a cell phone or other unauthorized electronic device (i.e. laptop, and et cetera.) on their person or around their desk during this...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT