Question

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.

Answer #1

Formula :

Elasticity of demand(e) using mid point formula is given by :

where Q" = New quantity = 660, P" = New price = 3, Q' = Initial quantity = 400 and P' = initial price = 4

Thus, using above information and formula we get :

=> e = -1.72. Here we have to write elasticity in positive terms.

**Thus, elasticity of demand be for gasoline
using the midpoint formula = 1.72**

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...

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 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...

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.)

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

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....

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.

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,...

1) Using the midpoint method, the price elasticity of demand is
determined to be about 0.85. If there is a 10% decrease in the
quantity demanded of the product then what effect would this have
on the price of the product?
A decrease in the price of the product from $8.50 to $10
A 11.8% increase in the price of the product
An increase in the price of the product from $8.50 to $10
2)The ________ is negative for complementary...

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