When the price is $6.00, the quantity demanded is 20. When the price is $9.00, the quantity demanded is 16. Calculate the price elasticity of demand.  You must use the midpoint formula. Given the elasticity of demand, a 10% increase in price will cause quantity demanded to fall by what percentage?  Explain your answer. Is this demand elastic or inelastic?  Explain your answer. What is assumed about consumer income when you measure the price elasticity of demand? Walmart advertises that it has rolled back prices. If Walmart is rolling back prices to raise revenues, should it roll back prices on products that have a price elasticity of demand that is elastic or inelastic?  Explain your answer.

Explain in your own words what information the income elasticity of demand provides.   If a good is an inferior good, what will the sign of the income elasticity of demand be?  Explain.

Suppose the price elasticity of demand for bread is 2. If the price of bread falls by 8 percent, the quantity demanded will increase by   Multiple Choice   16 percent and total expenditures on bread will fall.   16 percent and total expenditures on bread will rise.   4 percent and total expenditures on bread will fall.   4 percent and total expenditures on bread will rise.

I need help answering number 4 and 5.

To calculate an elasticity coefficient of demand, we need to Divide the percentage change in the price by the percentage change in the quantity demanded Multiply the percentage change in the quantity demanded by the percentage change in the price Know the slope of the demand curve Multiply the percentage change in the price by the percentage change in the quantity demanded

Suppose that consumers experience a 5 percent increase in income and purchase walking shoes increase by 6 percent.  What is the income elasticity for walking shoes?  (Give your answer to one decimal place.)

A recent report by the Centers for Disease Control looked at the relationship between the price of beer and the incidence of new cases of STD's. The report concluded that a beer tax increase of $.20 could reduce overall STD rates by 8.9%. Assume that a six pack cost $5.90 before the price increase. Calculate the cross price elasticity between beer and STD's. What is the sign of this cross-price elasticity? According to your estimate, are beer and STD's compliments or substitutes? Does your answer make sense? Explain.

The quantity demanded for product A increases 8% when the price of product B increases 16% and the other variables remain the same. Calculate the cross elasticity of demand. Products A and B, are they complementary or substitutes? Why? By drawing a graph, show the change in the demand curve for product A as a result of the change in the price of product B.

If price elasticity of supply of a good = 1.45 , how do you interpret this? If price elasticity of supply of a good = 0.45 , how do you interpret this? If price elasticity of supply of a good = 1.00 , how do you interpret this?

A rise in the price of a muffin from $2 to $3 results in a fall in the quantity demanded of muffins from 200 million to 160 million a day. Moreover, at today's price of a donut of $1.50, the quantity demanded of donuts increases from 70 million to 100 million a day.  Calculate the price elasticity of demand for muffins (show calculations) Is the demand for muffins elastic or inelastic? Calculate the cross elasticity of demand for donuts with respect to the price of a muffin. (show calculations) Based on the above calculation how would you characterize the relationship between muffins and donuts? Why would the business owner want to know this? Only typed solution