3. Using the midpoint formula, calculate elasticity for each of thefollowing changes in demand by a household.P1P2Q,Demand for:a. Long-distancetelephone serviceb. Orange juice$0.25per min.S0.15per min.300 min.400 min.per monthper month1.8914 qtper month1.4912 qtper monthper qtper qtc. Big Macsd. Cooked shrimp2.891.003 per week6 per week$9per lb$122 lb1.5 Ibper month per monthper lb

3. Using the midpoint formula, calculate elasticity for each of the following changes in demand by a household. P, P2 Demand for: a. Long-distance telephone service $0.25 $0.15 300 min. 400 min. per min. per min. per month 12 qt per month 6. per month b. Orange juice 1.49 1.89 14 qt per qt per qt per month c. Big Macs d. Cooked shrimp 2.89 1.00 3 per week 2 lb 3. 6 per week 1.5 lb per month $9 $12 per lb per Ib per month

3. Using the midpoint formula, calculate elasticity for each of the following changes in demand by a household. P, P2 Demand for: a. Long-distance telephone service $0.25 $0.15 300 min. 400 min. per min. per min. per month 12 qt per month 6. per month b. Orange juice 1.49 1.89 14 qt per qt per qt per month c. Big Macs d. Cooked shrimp 2.89 1.00 3 per week 2 lb 3. 6 per week 1.5 lb per month $9 $12 per lb per Ib per month

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Using the midpoint formula, calculate elasticity for each of the
following changes in demand by a household.
P1
P2
Q,
Demand for:
a. Long-distance
telephone service
b. Orange juice
$0.25
per min.
S0.15
per min.
300 min.
400 min.
per month
per month
1.89
14 qt
per month
1.49
12 qt
per month
per qt
per qt
c. Big Macs
d. Cooked shrimp
2.89
1.00
3 per week
6 per week
$9
per lb
$12
2 lb
1.5 Ib
per month per month
per lb

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