2. If, when the price of a product rises from GHc1.50 to GHc2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient, using the midpoint formula, is a. 3.00 b. 2.71 c. 0.37 d. 0.33

2. If, when the price of a product rises from GHc1.50 to GHc2, the quantity demanded of the product decreases from 1000 to 900, the price elasticity of demand coefficient, using the midpoint formula, is a. 3.00 b. 2.71 c. 0.37 d. 0.33

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6CQQ: Over time, technological advance increases consumers incomes and reduces the price of smartphones....

See similar textbooks

Related questions

Q: Solve the following two sequential games and explain your methodology step by step, state all…

A: Backward induction is a method for making decisions in sequential games by reasoning backward from…

Q: Apply It: Interpretation of Contracts Total points: --/5 Identifying the Facts and Issues This case…

A: Contract Enforcement:Contract enforcement is the legal process of ensuring that the parties to a…

Q: Mr. Peabody's demand for preservation of a trout stream

A: The demand curve depicts the inverse relationship between a consumer's willingness to pay and the…

Q: no ai answer only real person

A: The question is asking about the impact of a decrease in current income on a consumer's decision to…

Q: An economy in a recessionary gap will have. due to Select one: a. gradual decreases short-run…

A: A recessionary gap occurs when an economy is operating below its potential GDP, indicating that…

Q: chooses to devote all available hours (except those she has to sleep) to leisure during the week,…

A: 4) The government gives Anne a subsidy of $150, no matter how many hours she works. Even if she has…

Q: The graph below illustrates the demand curve for hammocks. As the price decreases, the demand curve…

A: Elasticity measures the change in quantity due to change in price. Price elasticity is calculated…

Q: Consider the following table: What is average total costs at 6 units of output?

A: Total Cost (TC) refers to the number of units produced by a firm in a given year. Total Fixed Cost…

Q: supply for oranges in a perfectly competitive market Demand: P= 200-100 Supply: P=15Q a) Find the…

A: Equilibrium occurs at the intersection point of market demand and market supply curve. The…

Q: Consider the inverse demand curve p = 144 - 2Q and the cost function C(Q) = 100+ 4Q. If the market…

A: Incidence of tax is an economic term used to refer the sharing of tax burden between buyers and…

Q: Typed plz and asap thanks Wrong answer not accepted

A: The issue is to perceive how fluctuations in worldwide oil prices (unpredictability) impact the…

Q: Q3. Consider the following game (i) (ii) (iii) Write down the expected payoffs for each player's…

A: The payoff matrix of the game is Player 2LeftRightPlayer 1Top8,21,6Bo3,54,1

Q: 1. Which of the following points is not attainable under the current situation?* OA ос OB O E OD OF…

A: Production Possibility Curve shows the various combination of two commodities which could be…

Q: Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and…

A: Collusion implies an agreement or cooperation between no less than two parties, generally businesses…

Q: Interest Rate (%) 10 8 00 6 N 0 Investment Demand $10 20 30 40 50 Investment ($) Show Transcribed…

A: Investment is function of interest rate and income I= f( Y,interest rate).. here interest rate is…

Q: In reality, the long run supply curve tends to be: Multiple Choice upward sloping downward sloping…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: macroeconomic model

A: National income refers to the overall financial cost of all goods and offerings produced within a…

Q: Suppose you have $12,000 in your checking account. You withdrawl $500 cash from your account and…

A: Here we calculate the change in money supply , by using the given information so the calculation of…

Q: Question 7 88 7 6+ 56 49 34- mc 20- AC A 1 2 3 4 S C 7 8 T Refer to the figure above. What is…

A: Cost (C) of production is the cost (C) incurred during the production process (P) of the commodities…

Q: a farmer in Georgia begins to grow peaches. He uses $1.000.000 in savings to purchase land. he rents…

A: Both Economic profit and Accounting ptofit solved below,

Q: Choose c₁ and c₁₂ to maximize U(c₁, c²) = ln ((c²)ª³ (c²)¹¯ª³) for j = 1,2 subject to: pie² + e² -…

A: Given,Maximization problem,Sub toAnd,

Q: Solve for the question below, using the following given information: QD=450-P TC=q²-150q+1000 MC =…

A: For Demand function, Q is a function of P. And for inverse demand function, P is a function of Q.

Q: How might a change in the elasticity of substitution between labour and capital affect the shape of…

A: Labor demand curve shows the combinations of hiring employers at the given wages or salary but under…

Q: Why is mobile marketing different from desktop marketing?

A: The provided question's answer includes the standpoint of economic theories and thus, it is answered…

Q: d. Who has the comparative advantage in carving fishing lures? in carving duck decoys? Fishing…

A: Comparative advantage is referred to as the benefit recorded by a country or individual from trade.…

Q: The government in your country is considering three programs that affect the market for cigarettes.…

A: Program 1: Campaigns run by govt to make the public aware of the adverse impacts of cigarette…

Q: 1-Use the graph to answer the questions. Typical Computer Firm Price or Cost (dollars per computer)…

A: A firm maximizes profit at the point where the additional revenue equals additional cost. At this…

Q: Typed plz and asap thanks I want quality answer please

A: The objective of the question is to determine the year in which the switch from Double Declining…

Q: The total utility of 6 units of good X is 50 and the total utility of 8 units of good X is 80. The…

A: Marginal vs Total Utility:Utility is the benefit or satisfaction consumers get from consumption.…

Q: of the following, which are true of state and local taxes? Select all that apply. State and local…

A: This can be described as a concept that shows the contribution of an individual, organisation or any…

Q: Ronald is an Economics students who likes to spend his leisure time of sixty hours a month doing one…

A: Budget Set:Budget set refers to the collection or set of all possible consumption bundles that an…

Q: Please handwriten solution

A: Payback period is defined as a period/amount of time that is required to recover the cost of an…

Q: Farmer Brown grows peaches. The average total cost and marginal cost of growing peaches for an…

A: The huge number of sellers and buyers with homogeneous products is referred to as perfect…

Q: REA diagram system of Nestle company

A: Introduction: The REA model eliminates many accounting elements that are no longer essential in the…

Q: A machine has a cost of Php 13173.00. It has a salvage of Php 2072.00 and an economic life of 9…

A: Sum of years depreciation factor is calculated by adding all years . For example if life is 3 years…

Q: Compared to a similar perfectly competitive industry, a single-price monopoly Selected answer will…

A: A single-price monopoly refers to the market condition where a single firm sells a specfiic good to…

Q: Only typed solution

A: The objective of the question is to determine whether the firm will shut down or continue to produce…

Q: Macmillan Learning Consider the given simple economy. Sheepnip Co. makes sheep feed. Better-bald…

A: The term GDP in economics can be defined as the monetary value of all the final goods and services…

Question

100%

Solve only 2nd question

Only typed answer

1. Which of the following could not cause an increase in the supply of cotton
a. An increase in the price of cotton
b.
Improvements in the technology of producing cotton
c. A decrease in the price of the machinery and tools employed in cotton production
d. A decrease in the price of corn
2. If, when the price of a product rises from GHc1.50 to GHc2, the quantity demanded of the
product decreases from 1000 to 900, the price elasticity of demand coefficient, using the
midpoint formula, is
a. 3.00
b. 2.71
d. 0.33
3. You are the sales manager for a pizza company and have been informed that the price
elasticity of demand for your most popular pizza is greater than 1. To increase total revenues,
you should
c.0.37

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

Introduction

VIEW

Explanation

VIEW

Step by step

Solved in 2 steps

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 equation for a supply curve is P=3Q8. What is the elasticity in moving from a price of 4 to a price of 7?
The quantity supplied of a good rises from 120 to 140 as price rises from 4 to 5.50. What is the price elasticity of supply of the good?
The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the price elasticity of demand is a. 1/5. b. 1/2. c. 2. d. 5.
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.
Describe the general appearance of a demand or a supply curve with infinite elasticity.
From the data in Table 5.6 about supply of alarm clocks, calculate the price elasticity of supply from: point J to point K, point L to point M, and point N to point P. Classify the elasticity at each point as elastic, inelastic, or unit elastic.
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 is the price elasticity of demand? Can you explain it in your own words?
The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.
Over time, technological advance increases consumers incomes and reduces the price of smartphones. Each of these forces increases the amount consumers spend on smartphones if the income elasticity of demand is greater tha____________ and if the price elasticity of demand is greater than_____________. a. zero, zero b. zero, one c. one. zero d. one, one
The supply of paintings by Leonardo Da Vinci, who painted the Mona Lisa and The Last Supper and died in 1519, is highly inelastic. Sketch a supply and demand diagram, paying attention to the appropriate elasticities, to illustrate that demand for these paintings will determine the price.
Describe the general appearance of a demand or a supply tune with zero elasticity.