1. Calculating the price elasticity of demandSuppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increasedfrom 436,000 to 537,000 laptops.Calculate the elasticity of demand between these two price-quantity combinations by completing the table, using the midpoint formula.OriginalChangePercentage ChangeNewAverageQuantityPrice2$Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate thepercentage change in price.Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring thenegative sign.Using the midpoint method, the elasticity of demand for laptops is about

Price of laptop decreases from $2,350 to $1,930 and quantity increases from 436,000 to 537,000.…

1. Calculating the price elasticity of demand Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,.000 laptops. Calculate the elasticity of demand between these two price-quantity combinations by completing the table, using the midpoint formula. Original New Average Change Percentage Change Quantity Price Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price. Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign. Using the midpoint method, the elasticity of demand for laptops is about

1. Calculating the price elasticity of demand Suppose that during the past year, the price of a laptop computer fell from $2,350 to $1,930. During the same time period, consumer sales increased from 436,000 to 537,.000 laptops. Calculate the elasticity of demand between these two price-quantity combinations by completing the table, using the midpoint formula. Original New Average Change Percentage Change Quantity Price Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price. Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign. Using the midpoint method, the elasticity of demand for laptops is about

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 8E: The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per...

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