Question

The price of a large pizza decreased from $19.00 to $15.00. As a result, the quantity demanded of skateboards increased from 280.00 to 300.00.

Part 1 (1 point)

Using the midpoint formula, what is the percentage change
observed for the price of a large pizza? Give your answer to two
decimal places.

%

Part 2 (1 point)

Using the midpoint formula, what is the percentage change
observed for the quantity demanded of skateboards? Give your answer
to two decimal places.

%

Part 3 (1 point)

What is the cross-price elasticity of demand between pizzas and
skateboards? Give your answer to two decimal places.

Answer #1

Midpoint Method

Price | Quantity Demanded |

$19 | 280 |

$15 | 300 |

Cross Elasticity of Demand = % Change in Quantity Demanded of Skateboards / % Change in Price of Pizza

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

% Change in Quantity Demanded = 300 - 280 / (280+300/2) x 100

% Change in Quantity Demanded = 20 / 290 x 100

**% Change in Quantity Demanded = 6.89**

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

% Change in Price = 15 - 19 / (15+19/2) x 100

% Change in Price = -4 / 17 x 100

**% Change in Price = -23.52**

Cross Elasticity of Demand = % Change in Quantity Demanded of Skateboards / % Change in Price of Pizza

Price Elasticity of Demand = 6.89 / -23.52

**Price Elasticity of Demand = 0.29**

Negative sign is ignored in price elasticity of demand

1.The price of a large pizza decreased from $19.00 to $15.00. As
a result, the quantity demanded of skateboards increased from
240.00 to 260.00.
2.Using the midpoint formula, what is the percentage change
observed for the price of a large pizza? Give your answer to two
decimal places.
3. Using the midpoint formula, what is the percentage change
observed for the quantity demanded of skateboards? Give your answer
to two decimal places.

The price of a large pizza decreased from $18.00 to $14.00. As a
result, the quantity demanded of skateboards increased from 250.00
to 270.00.
1st attempt
Part 1 (1 point)
See Hint
Using the midpoint formula, what is the percentage change
observed for the price of a large pizza? Give your answer to two
decimal places.
%
Part 2 (1 point)
See Hint
Using the midpoint formula, what is the percentage change
observed for the quantity demanded of skateboards? Give your answer...

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...

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....

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....

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.

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.)

If the price for
gasoline changes from $4 to $3 and the quantity of miles driven
changes from 400 to 660 units, what would the elasticity of demand
be for gasoline using the midpoint formula. Record your answer as a
positive number to two places after the decimal.

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——?

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...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 10 minutes ago

asked 25 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 36 minutes ago

asked 36 minutes ago

asked 41 minutes ago

asked 43 minutes ago

asked 44 minutes ago

asked 44 minutes ago

asked 47 minutes ago

asked 1 hour ago