Answered: If the price of a good decreases from…

If the price of a good decreases from $6.50 to $5.75 and, as a result, the quantity demanded increases from 500 to 700. Using the midpoint method, the price elasticity of demand is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Using the midpoint method, the price elasticity of demand for pistachios between the price levels of…

A: Price Elasticity of Demand (PED) is a measure of the responsiveness or sensitivity of the quantity…

Q: Find the elasticity of the demand function pq = 81 at p = 3.

A: The elasticity of demand refers to the responsiveness of the quantity demanded by consumers with…

Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80…

A: The price elasticity of demand for a product is 2.5.The price reduces from $2.00 to $1.80.

Q: The demand for wooden chairs can be modeled as D(p) = -0.01p+ 6.75 million chairs where p is the…

A: A measure that quantifies the degree to which consumers adjust their demand for a product when its…

Q: elasticity of supply is 0.72 and the change in price is 30% Find the change in quantity supplied

A: A good's 'Cost elasticity of drmand is a proportion of how delicate the amount requested is to its…

Q: If price elasticity of supply is +0.66 Find the value of change in quantity supplied if change in…

A: The information being given is as follows:- Price elasticity of supply = 0.66 Change in price = 33%…

Q: If a product's price rises by 6%, and its quantity demanded falls by 8%, then its elasticity is…

A: Increase in Price=6% Decrease in quantity= 8%

Q: The demand for a good is QD = 19 – 2P + 4l where P and I represent price and income respectively. At…

A: Answer; The income elasticity of demand is 0.32

Q: The product that I'll choose in this example are cigarettes. The price elasticity of demand for…

A: Yes, cigarettes as a product may be sold. Although the price elasticity of the demand for cigarettes…

Q: If a manufacturer sets the price of the good at $ 10, he can sell 300 of this item in a year. If the…

A: I) Arc elasticity of demand Ed= % change in quantity demanded/% change in price =…

Q: A price elasticity of demand equal to 5 means

A: The formula for elasticity is given by: ep = [dq/dp] x [p/q] If ep > 1 then elastic demand If…

Q: The market demand for a product is Q=240-4P. At what price is the price elasticity of demand equal…

A: The degree to which the effective desire for commodity changes as the price(P) of that commodity…

Q: The price elasticity of supply measures the response of sellers to change in the price of a product.…

A: The responsiveness of a good or service's supply to a change in its market price is measured by…

Q: he percentage increase in quantity demanded.

A: The price elasticity of demand is characterized as the rate change in amount demanded ÷ by the rate…

Q: Calculate price elasticity of supply using the mid-point method.

A: The change in the quantity supplied of a good in response to a change in its price is known as price…

Q: Find the point (p,q) Where elasticity = 1

A: Elasticity is defined as the responsiveness of the quantity demanded to the change in…

Q: The price of a good decreased from $40 to $10. The initial quantity demanded is 400 Assuming a…

A: Percent change in price =p2-p1/(p2+p1)/2*100 =40-10/50/2*100 =30/50/2*100=0.6/2*100 =0.3*100=30

Q: If elasticity of supply is 0.72 and the change in price is 30% Find the change in quantity supplied

A: PES = Percentage change in quantity supplied/ Percentage change in Price 0.72= Percentage change in…

Q: According to the midpoint method, the price elasticity of demand for tomatoes between point X and…

A: Elasticity measures the responsiveness of quantity demanded to changes in price.

Q: Price elasticity of demand (PED): Definition Possible range of values Diagrams illustrating the…

A: In economics, elasticity is defined as a degree of responsiveness of the quantity demanded of a…

Q: The method for calculating own price elasticity of demand is

A: The concept of price elasticity of demand is used to explain the responsive nature between the…

Q: Using the midpoint method, what is the price elasticity of demand when the price changes from $3.00…

A: Elasticity has evolved over time, beginning with the basic notion of supply-demand elasticity. It…

Q: (a) Obtain a formula for the price elasticity of demand E. E = (b) In one of the years the actual…

A: We are going to use the relationship between the elasticity of demand and marginal revenue to answer…

Q: Find elasticity of demand if price rise by 40% and quantity falls by 10% (b) Is the demand elastic…

A: We are given that:- Rise in price = 40% Fall in quantity = 10% We need to calculate the elasticity…

Q: Recently, in Beijing, the price of Quduoduo cookies fell from $0.80 to $0.70. As a result, the…

A: The value of elasticity of demand being negative showing that as a result of decrease in price the…

Q: A price elasticity of supply of 1.25 means that if the price increases by 10%, the quantity supplied…

A: A measure of the responsiveness of the quantity (Q) supplied of a good or service to a change in its…

Q: Suppose the price of a bag of frozen chicken nuggets increases from $5.75 to $7.50 and, as a result,…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: If the price elasticity of demand for gasoline is 0.20: Group of answer choices the demand for…

A: Given The price elasticity of demand for gasoline is 0.20 Price elasticity of demand measures the…

Q: If elasticity of demand is 0.61 and change in quantity demanded is 32% Find change in Price

A: According to the above mentioned question, we have:- elasticity of demand = 0.61 Change in quantity…

Q: If the value of the price elasticity of demand is 0.2, this means that: Group of answer choices a…

A: Microeconomics refers to the study of individuals, households, and firms' behavior in…

Q: The demand for Widgets (QX) is a function of the price of widgets (PX), the price of wooz (PY), and…

Q: e. A decrease in the price of electricity from $5.75 to $5.25 per kilowatt hour causes an increase…

A: Price of electricity decrease from $5.75 to $5.25 per kilowattquantity demanded of electric cars…

Q: Find the elasticity of demand for the demand equation X = (p+1)² 100 when p = 4.

A: The elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: The price of a good decreased from $35 to $15. The initial quantity demanded is 240 Assuming a…

A: PED= [(Q2−Q1)/(Q2+Q1)/2] / [(P2−P1)÷(P2+P1)/2] PED = Price elasticity of demand = 1 P1 = Initial…

Q: Suppose that the price per unit p as a function of the demand x is p = 478.8 -0.9x. (a) Calculate…

A: The elasticity of demand refers to the magnitude of change in the quantity demanded in response to…

Q: When the price of the jeans was $58 each, the shop sold 100 per month. When they reduced the price…

A: The price elasticity of demand measures the sensitivity or responsiveness of quantity demanded with…

Q: The demand for watermelon is represented as Qd= 10 −0.5P . (a) What is the price elasticity of…

A: "Price elasticity of demand measures how much quantity demanded of a product changes when price of…

Q: Suppose you did an analysis regarding the sensitivity of tea to the price of tea. You estimated the…

A: Price elasticity of demand refers to a percentage change in quantity demanded due to a percentage…

Question

If the price of a good decreases from $6.50 to $5.75 and, as a result, the quantity demanded increases from 500 to 700. Using the midpoint method, the price elasticity of demand is

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Elasticity

VIEW

Step 2: Elasticity Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The price elasticity of demand can be found by: comparing the percentage change in quantity demanded to the percentage change in price. measuring absolute changes in price and quantity demanded. knowing that when price changes, quantity demanded goes in the opposite direction. examining only the slope of the demand curve.
Use the point method the price elasticity of demand for the demand curve P=200-2Q, when P=30 is A)3 B)0.188 C)12 D)0.333 E)0.75
A price elasticity of -1.5 means that we expect (approximately) the percentage change in quantity demanded to be 1.5 times the percentage change in price. Minus sign means when price goes up, quantity demanded goes down and vice versa. true/false
Exercise : Following an increase in it's price, from 10$ to 12$, the demand for a good falls from 10500 to8100 units.What elasticity of demand would you estimate from these data? Calculate its value, first by using the general formula (for discrete changes), then by assuming a constantconstant elasticity of demand (log formula).Calculate the demand for p=9 (note q9 the quantity for p=9), using the general formula then in log of the elasticity calculated in Now, Knowing the value of the direct price elasticity of demand calculated previously, assuming constant costs andcosts and rivals not responding to your price cut, would you have recommended the price cut from 10 to 9?price cut from 10 to 9 ?
The demand for hair dryers is described by the following function: P= 240-5Qd If the price is $185, what is the quantity demanded? If the price is $185, what is the total revenue? If the price is $175, what is the quantity demanded? If the price is $175, what is total revenue? Compute the price elasticity of demand at the average price of $180.
The price elasticity of supply is a measure of the: Responsiveness of buyers of a good to changes in its price Effect of changes in supply on the price Responsiveness of sellers of a good to changes in its price Relationship between price and profitability Sensitivity of a good's price to changes in supply
If the price elasticity of demand for gasoline equals 0.3, then qn increase in the price of a gallon of gasoline from $3.70 to $3.90 A) decreases total revenue. B) increases total revenue. C) leads to no change in total revenue. D) makes the demand for gasoline elastic. E) Both answers B and D are correct.
d) Find the elasticity of Q with respect to P for the following functionsi) Q =1/pii) Q = √(P3)
The price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The initial quantity of the product is 190 units. Calculate the new quantity of the product, and use the midpoint method
It was observed in a particular supermarket that after the price of good X dropped from 20 pesos to 17.50 pesos, the weekly demand for the said products increased from 150 units to 220 units. Solve for the Price Elasticity of Demand, then identify whether the consumer demand for good X is elastic, inelastic, or unit elastic.
When the price of a good is $100, the quantity supplied is 750 units; when the price is $200, the quantity supplied is 1,250 units. Using the midpoint method, compute the price elasticity of supply for the good.
The demand for good X has been estimated by Q xd = 12 − 3Px + 4Py. Suppose that the price of good X (Px) is $2 per unit and the price of good Y (Py) is $1 per unit. (a) Calculate the own price elasticity. Please show your calculations. (b) Calculate the cross price elasticity of demand. Please show your calculations.