Quantity e of Widgets Price of Gadgets Consumer Income Quantity Supplied Demanded $4 $5 $100 20 15 $6 $5 $200 22 25 $6 $4 $100 18 25 $6 $5 $100 12 25

Suppose that during the past year, the price of a laptop computer fell from $2,950 to $2,450. During the same time period, consumer sales increased from 430,000 to 619,000 laptops.   Calculate the price elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)     Original New Average Change Percentage Change Quantity              Price                Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.   Step 2: Calculate the average quantity by adding the original quantity and the new quantity and then dividing by 2. Do the same for the average price.   Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do…

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 figure to the right illustrates the demand for taxi rides in a large city. Suppose the price per ride is initially $35 but then falls to $25 due to a recession. What is the price elasticity of demand for taxi rides? Using the midpoint formula, the price elasticity of demand is. (Enter your response rounded to two decimal places.) Demand is unit-elastic inelastic elastic C Price (dollars per taxi ride) 60- 55- 50- 45- 40- 35- 30- 25- 20- 15- 10- 5- 0+ 0 A B D 40,000 80,000 120,000 160,000 200,000 240, Quantity (taxi rides per day)