Question: PRICE ELASTICITY OF DEMAND % change in Q demand % change in price PERCENTAGE CHANGE Revenue new number-old number average X 100 Price X Quantity Use the formula above to calculate values of price elasticity of demand for all the situations below. Make sure to show your calculations. Price Quantity Initial New Initial New 30 80 35 35 90 00 30 % change in quantity demanded % change in price Elasticity of Demand Revenue Initial New

According to the previous discussion, what factors influence the price elasticity of demand for cigarettes? What other factors not mentioned in the article might influence the price elasticity of demand for cigarettes?

From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic.

What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.

What is the price elasticity of demand? Can you explain it in your own words?

Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the price of oranges falls by 3. What will happen to the demand for apples?

What does a price elasticity of demand of 0.39 mean?

Define the price elasticity of demand. Explain the relationship between total revenue and the price elasticity of demand.

The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?

The equation for a demand curve is P=483Q. What is the elasticity in moving from quantity of 5 to a quantity of 6?