Answered: 3. When price of a commodity is Php 10…

3. When price of a commodity is Php 10 per unit, its demand is 100 units. When the price falls to Php 8 per unit, demand expands to 150 units. Calculate price elasticity of demand.

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 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....

See similar textbooks

Related questions

Q: • An engineer has a talent t in {1,2} with equal probability (prob=1/2), and the value of t is…

A: A Bayesian Nash equilibrium is a concept from game theory that extends the traditional Nash…

Q: Foreign Trade Zones Cajas, Inc, is considering opening a new warehouse to serve the Southwest…

A: Definition: A tariff is a tax on goods and services imported into a country. It is typically used to…

Q: 4) The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor…

A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…

Q: Using the model of Aggregate Demand and Supply, explain the impact of Brexit on the Irish Economy,…

A: With increased global integration of trade and economic activities, it is more important than ever…

Q: (b) During a nationwide program to immunize the population against a new strain of the flu, public…

A: Answer: Given: Total cost function: Cx=1.85x100-xwhere x is the percentage of susceptible population…

Q: Mike Carlton, financial analyst at MVR Corporation, is examining the behavior of quarterly utility…

A: Total Cost: The term total cost refers to the cost that includes the total variable cost and the…

Q: 7 If the price of Chinese food decreases, there will be an (increase/decrease) in the…

A: Demand is the willingness to buy backed by the purchasing power. The law of demand states that…

Q: 2. Alice maximizes expected utility with an index u(x) √x where x is the total annual income. Her…

A: In certainty equivalence the preference of the consumer is an assured amount rather a higher return…

Q: Critically evaluate why does having relevant industry experience help the founder or founders of a…

A: Economic Growth: It is the financial development of the economy. It can be characterized as the…

Q: Businesses in the nation of Islandia have been accumulating cash because they have a pessimistic…

A: GDP is the gross domestic product. GDP is the money value of all goods and services produced in an…

Q: Explain the three characteristics of utility.

A: The economics as a study is based upon the idea that all the societies in the world tend to face a…

Q: A 255.

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

Q: dccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc…

A: Your question is not visible.

Q: 13. In Avengers: Infinity War the character Thanos seeks to use the power of the infinity stones to…

Q: Consider the neoclassical growth model. Suppose in the current period a country's saving per worker…

A: The Solow–Swan model, sometimes known as the exogenous growth model, is a long-run economic growth…

Q: Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable ATC AVC MC Labor…

A: The law of diminishing marginal return that when more and more variables factors are added with…

Q: Consider the polar case where the demand curve is perfectly inelastic. Use the line drawing tool to…

A: Perfectly inelastic demand defines the condition when a change in the price of a commodity does not…

Q: An economy with no government is described by the following: • Marginal propensity to consumer = 0.8…

A: An inflationary output gap refers to the macroeconomic concept which measures the difference between…

Q: Insurance Diagram Total Utility E U(W-L) B W-L P(W-L)+(1-p)W Expected If an insurance company…

A: * ANSWER :- By using given data the matching are given below

Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…

A: Below is the explanation of all four parts and they are as follows-

Q: 14. (continued) What happens to the labor productivity, which is the output per unit of labor, Y/L,…

Q: TIPS FOR READING AN EXCHANGE RATE CHART: Read down the chart.. For example, n column 1 it says the…

A: Foreign exchange rate refers to the rate at which two nations currencies are exchanged . Two types…

Q: A company plans to assign six salesmen to six cities in which it operates. The estimates o sales…

A: Salesman City C1 C2 C3 C4 C5 C6 total S1 42 48 50 38 50 54 282 S2 50 34 38…

Q: Cups of Coffee $6 $5 $4 $3 Demand $2 Osupply $1 $0 Quantity 1. According to the graph above, what is…

A: We have given the demand and supply curve of coffee cups. At a given price, if quantity demand is…

Q: write your answers, as long as they are legible. Most students find that it is easier to hand draw…

A: Answer - Need to find- For final equilibrium point C, why does aggregate output "Pullback" somewhat…

Q: Question Ten firms compete in a market to sell product X. The total sales of all firms selling the…

A: The four-firm concentration ratio alludes to a measure utilized in economics to evaluate the degree…

Q: 5. If a new study shows that eating dark chocolate promotes a healthier lifestyle, the…

A: Change in demand occurs due to change in non price factors like expectation of future prices, change…

Q: 1B True or false with explanation

A: Interest rate parity is a no-arbitrage condition representing an equilibrium state under which…

Q: The People's Republic of China has an estimated $101.54 trillion of capital with a depreciation rate…

A: The contribution of capital is 0.4 and it would affect the GDP accordingly. The rise in capital…

Q: 9-1 a and b

A: The given production possibility curve shows that the economy allocates resources in the production…

Q: 82 66 50 38 32 24 16 8 16 22 25 34 41 Q Use the graph above to answer questions #5-7 about the…

A: We only answer one question so we will answer the first one. Please submit a new question specifying…

Q: Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥2,100,000. The exchange rate…

A: The value of one currency in respect to another is known as an exchange rate. It shows the cost…

Q: lacroeconomics LESSON 6 ACTIVITY 42 Monetary Policy now bring together all of the pieces of the…

A: (A) Fed will use expansionary monetary policy to move the economy to full-employment level because…

Q: 1. Explain why the unemployment rate can give a misleading picture of the health of a given…

A: 1. The national unemployment rate is calculated as a proportion of the entire labor force that is…

Q: see in

A: E onomic growth mostly occurs in large economies population.

Q: If the price of good A increases relative to the price of substitutes Rand C the demand for

A: To find : According to scenario what will happen im change of price .

Q: The demand curves for cases of Coke and Pepsi are given respectively by Qc(Pc. Pe) = 200 - 10pc +…

A: Cournot duopoly is an oligopoly form of market where the producers compete in the quantity to be…

Question

3. When price of a commodity is
Php 10 per unit, its demand is 100
units. When the price falls to Php 8
per unit, demand expands to 150
units. Calculate price elasticity of
demand.

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

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 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

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?
Suppose you could buy shoes one at a time, miter than in pain. What do you predict the cross-price elasticity for left shoes and right shoes would be?
What is the formula for line cross-price elasticity of demand?
What is the relationship between price elasticity and position on the demand curve? For example, as you move up the demand curve to higher prices and lower quantities, what happens lo the measured elasticity? How would you explain that?
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
What does a price elasticity of demand of 0.39 mean?
Describe the general appearance of a demand or a supply curve with infinite elasticity.
What is the price elasticity of demand? Can you explain it in your own words?
Income Effects depend on the income elasticity of demand for each good limit you buy. If one of the goods you buy has a negative income elasticity, that is, it is an inferior good, what must be true of the income elasticity of the other good you buy?
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.
The avenge annual income rises from 25,000 to 33,000, and the quantity of bleed consumed in a year by the avenge person falls from 30 loaves to 22 loaves. What is the income elasticity of bread consumption? Is bread a normal or an inferior 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.