**Price Elasticity of Demand Worksheet**Circle the letter associated with the correct answer and write the correct letter on the line (and use corresponding online answer key to submit your answers...make sure you read the associated questions and responses).**1.** When the price of coffee changed from $4.50 to $5.55, the quantity demanded changed from 185 to 150. Using the midpoint method, the price elasticity of demand is:- A) 0.03- B) 6.95- C) 1- D) 20.03**Show your work here**| Formula | Calculation | Answer ||---------|-------------|--------|| | | |**Coffee is INELASTIC ELASTIC UNITARY ELASTIC** (circle one)---**2.** A poultry rancher discovered that when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of her eggs fell from 300 dozen per week to 200 dozen per week. Her price elasticity of demand (using the midpoint method) would be:- A) 2.60- B) 1.40- C) 0.75- D) 2.40**Show your work here**| Formula | Calculation | Answer ||---------|-------------|--------|| | | |**Eggs are INELASTIC ELASTIC UNITARY ELASTIC** (circle one)---**3.** Ceteris paribus, if the price of a good decreases from $32 to $24, and the quantity demanded of the good increases from 80 to 100, then the price elasticity of demand (using the midpoint method) for that good is:- A) 0.22- B) 0.29- C) 0.78- D) 1.20**Show your work here**| Formula | Calculation | Answer ||---------|-------------|--------|| | | |**This good is INELASTIC ELASTIC UNITARY ELASTIC** (circle one)---**Explanation of Graphs and Diagrams:**There are no graphs or diagrams in this worksheet. The worksheet provides space for calculation work which involves filling out the formula, showing the calculation, and writing the answer to determine the elasticity type. ### Questions and Exercises on Price Elasticity of Demand**Question 4:** _As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas bought to 500 pounds. The price elasticity of demand (using the midpoint method) is:_- A) 0.80- B) 1.00- C) 1.25- D) 1.50**Show your work here:**- **Formula:** - **Calculation:** - **Answer:** **This good is:** I) INELASTIC II) ELASTIC III) UNITARY ELASTIC (circle one)---**Question 5:** _If the price falls from $3 to $2, and the quantity demanded rises from 200 to 400 units, compute the price elasticity of demand using the midpoint method._- A) 2.00- B) 1.67- C) 0.67- D) 0.60**Show your work here:**- **Formula:** - **Calculation:** - **Answer:** **This good is:** I) INELASTIC II) ELASTIC III) UNITARY ELASTIC (circle one)---**Question 6:** _A product's price changes from $2 to $6 and its quantity demanded changes from 10 to 4 units. This is an example of price:_- A) inelastic demand.- B) elastic demand.- C) unitarily elastic demand.- D) inelastic supply.**Show your work here:**- **Formula:** - **Calculation:** - **Answer:**

The price of coffee changed from $4.50 to $5.55, the quantity demanded is changed from 185 to 150.

Answered: 1. When the price of coffee changed…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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During a particular week six months ago, suppose that the price of a 1 pound slab of Scottish Coho salmon at your local grocery store was $20; currently the price is $25/lb. The manager informs you that 100 pounds were sold during a particular week six months ago when the price was $20/lb. while 80 pounds were sold this week. Calculate the price elasticity of demand (point formula, not midpoint/arc formula—consult the textbook). Based solely on your calculation, is the demand relatively elastic or relatively inelastic? If the grocery store is a price setter, should it increase or decrease the price of salmon to increase its revenue? Only consider this one good—keep it simple. Answer in a few sentences.
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R
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1. When the price of coffee changed from $4.50 to $5.55, the quantity demanded changed from 185 to 150. Using the midpoint method, the price elasticity of demand is: A) B) 0.03. 6.95. 1. D) 20.03.