i need help with this microeconmics question 5 ## 5. Calculating the Price Elasticity of Demand: A Step-by-Step GuideSuppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (*Note: For decreases in price or quantity, enter values in the Change column with a minus sign.*)### Table: Price Elasticity of Demand Calculation| | Original | New | Average | Change | Percentage Change ||-------|-----------|----------|----------|-------------|-------------------|| Quantity | | | | | || Price | $ | $ | | $ | |### Step-by-Step Instructions:**Step 1:**Fill in the appropriate values for original quantity, new quantity, original price, and new price.**Step 2:**Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price.**Step 3:**Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.**Step 4:**Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price.**Step 5:**Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign.---### Calculation Example Using Provided Data:**1. Fill in Values:**| | Original | New | | ||-------|-----------|---------|--------|------|| Quantity | 446,000 | 321,000 | | || Price | $2,750 | $2,880 | | |**2. Calculate Averages:**- Average Quantity = (446,000 + 321,000) / 2- Average Price = ($2,750 + $2,880) / 2**3. Calculate Changes:**- Change in Quantity = 321,000 - 446,000

Answered: Image /qna-images/answer/b5d3a553-4ac1-40bb-8ef6-9fefcd72c4cd.jpg

5. Calculating the price elasticity of demand: A step-by-stepguide Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.

5. Calculating the price elasticity of demand: A step-by-stepguide Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Multiple Choice O $375. O s0.50. O $200

A: Willingness to pay is the amount that the consumers are willing to pay. The difference between the…

Q: The industry for cobalt mining is perfectly competitive. A typical mine has a capacity constraint of…

A: The supply curve depicts the units of the commodity that producers are ready and willing to supply…

Q: Consider two goods, plane tickets and milk. Suppose Poornima is to choose the optimal quantities of…

A: Consumer equilibrium is reached when he schedules his spending in such a way that he maximizes his…

Q: There are two countries in the world: Happytimes and Treehausland. Both countries currently have a…

A: Happytimes's GDP = Current GDP(1 + Growth rate)^15 = 1*(1 + 0.086)^15…

Q: What are three important themes in microeconomics

A: Microeconomics studies the behavior of Consumers, firms and workers as well as how the markets are…

Q: Alternative X has a first cost of 19000 an annual operating cost of 3500, and a salvage value of…

A: Present worth = -P+(AR-Am)( P/A,i%,n)-+F(P/F,i%,n)where, P is the initial cost, AR is the annual…

Q: find a current article about any micro economics topic and explain the two sides of the topic using…

A: MICRO ECONOMICS- micro economics implies the study of the aspect of economy at individual level.it…

Q: Refer to the Front Page article to answer one question. FRONT PAGE Recycling Wastes Money New York…

A: A budget proposal refers to a detailed document comprising of all the information about the expected…

Q: Explain Say’s Law and walras law in Microecnomics? Please describe with graph or with one example…

A: According to say's law focus point of economy should be the supply side because demand arises out of…

Q: Suppose the central bank for the Island Nation of Somberio creates a new currency and issues…

A: The money multiplier is the amount by which the money supply increases for every unit increase in…

Q: Give one example of external economics of scale?

A: According to the given question Simply we can state that the external economy are those economies…

Q: Noria's economy is in short-run equilibrium with an inflationary gap of $270 billion, and the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: From the previous graph, you can tell that Kenji is willing to pay for his 8th slice of apple pie…

A: Consumer surplus is the difference between what a consumer is willing to pay for consumption of a…

Q: What are the two major economic problems in economics

A: Economics is the study of allocation of limited resources. The fundamental economic problem is about…

Q: Suppose that Manuel and Poornima are the only consumers of shoes in a particular market. The…

A: Market demand can be calculated by using the following formula: When price is $10 and the…

Q: Patrons at the Ritzy cinema can either buy their tickets at the counter (from a person) or enter…

A: Given: Machines=2 Members of staff=4 Staff cost per day=50 Machine rental per day=10

Q: 3. Income and substitution effects Dina has a so-called fruit budget, which she uses to buy only…

A: Dina only buys apricots and nectarines.

Q: _______ A system where individuals own and operate themajority of businesses

A: Economics is the study of efficient allocation of the scarce resources in the economy. Resources are…

Q: Consider the market for designer purses. The following graph shows the demand and supply for…

A: Equilibrium price is $30 and Equilibrium quantity is 320 purses.

Q: Explain The existence of an Economic problem

A: Economic problem is a situation where wants are unlimited and resources are scarce.Economic problem…

Q: 1. Consider the Cobb-Douglas production funetion f(K,L) = cK"L*, where a, b, and e are constants…

A: Given information Cobb Douglas production f(K,L)=cKaLb a, b and c is constant and greater than 0

Q: How do I graph the amount of fertilizer that needs to be added to an acre of land and the amount of…

A: A graph is a visual representation of information that is used to show the relationship or pattern…

Q: Question 2. Are microeconomics and macroeconomics interdependent?

A: Microeconomics studies the individual behaviour as a single unit where as macroeconomic studies the…

Q: how does transportation address the economic problem of scarcity

A: Scarcity refers to the limited availability of economic resources with the economies. The economic…

Q: Data collected from the economy of Pokerville reveals that an 18% decrease in income leads to the…

A: Given - Percentage change in Income = -18% Percentage change in quantity demanded of horses = -6%…

Q: s a family decision about how much income to save a microeconomics or macroeconomics topics

A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…

Q: 6.16 Let x = (x¹,...,x) be an allocation of goods to agents, and let the economy's feasible set of…

A: The utilitarian social welfare function is a concept in welfare economics that seeks to maximize the…

Q: A good without any close substitutes is likely to have relatively demand, since consumers cannot…

A: Price elasticity of demand can be defined as the ratio of the change in percentage of quantity…

Q: Total surplus is elect one: a.always smaller than producer surplus. b.the total value of the good to…

A: Total surplus is the summation of consumer surplus and producer surplus.

Q: Which of these scenarios is inefficient and why?

A: In scenarios 1 and 2,either no lawn is mowed or no car is washed. Therefore in these 2…

Q: Suppose that the demand curve for wheat is and the supply curve is decreases Q-200-40p The…

A: Equation of demand curve: .........(1)Equation of supply curve…

Q: Consider the market for bolts. Suppose that a hardware factory dumps toxic waste into a nearby…

A: Social cost is the addition of external cost to the private cost.

Q: Microeconomics definition. Discuss in detail the major terms used in these definitions.

A: Economics is divided into two groups, microeconomics and macroeconomics. Microeconomics is the study…

Q: what are the 3 major goals of macroeconomics

A: Macroeconomics study the behavior of the economy of a country as a whole. Macroeconomics focus on…

Q: what does the absence of scarcity in an economy reflect in a graph?

A: In the absence of scarcity, the production of one good does not reduce the availability of resources…

Q: Question 3 (Market Failure - Externalities) Consider the inverse demand function p = 400 – 2q in a…

A: In economics, a scenario is known as a "market failure" is one in which the supply of commodities…

Q: t might happen to the cost of a resource as it becomes scarce

A: Equilibrium(E) refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…

Q: What are some of the insights gained from taking a fundamental microeconomics course?

A: Microeconomics is a feild of study that deals with allocation of scares resources in an order that…

Q: What could be the major learnings that could developed by taking a introductory microeconomics…

A: The Microeconomics is an economics that deals to satisfy an individual producer, an individual…

Q: The production possibilities frontiers in the figure to the right show how many bananas and coconuts…

A: Comparative advantage refers to the ability of the country or individual to produce the good at a…

Q: The following graph shows the demand for a good. 140-+ 20 Demand 21 27 QUANTITY (Units) For each of…

Q: Capitalism refers to: a traditional economy. O a command economy. O a market economy. O socialism. C…

A: Capitalism is one ideology to run an economy that promotes the trade between the consumers and…

Q: Can parallels be drawn between biological evolution and the evolution of economic systems?

A: An economic system is a way for government or societies to coordinate and distribute capital,…

Q: Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price…

A: According to the Law of Demand and Supply more quantities of a commodity is demanded and less is…

Q: The graph shows the schedule for hours of tutoring in economics. Price (per hour of tutoring) $25 20…

A: Demand refers to the quantity of a good or service that consumers are willing and able to purchase…

Q: what are the four structures in economics

A: In economics, market structure refers to how different industries are classed and distinguished…

Q: a) As countries' per capita incomes increase, the gap between a PPP measure of their GDP and a…

A: PPP , or Purchasing Power Parity, is a measur of GDP that takes into account the differences in…

Q: Below is a table of exchange rates and GDPS (Gross Domestic Products) for a variety of imaginary…

A: "GDP i.e. the gross domestic product represents the market value of all the final goods and services…

Question

i need help with this microeconmics question 5

## 5. Calculating the Price Elasticity of Demand: A Step-by-Step Guide

Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.

Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (*Note: For decreases in price or quantity, enter values in the Change column with a minus sign.*)

### Table: Price Elasticity of Demand Calculation

| | Original | New | Average | Change | Percentage Change |
|-------|-----------|----------|----------|-------------|-------------------|
| Quantity | | | | | |
| Price | $ | $ | | $ | |

### Step-by-Step Instructions:

**Step 1:**
Fill in the appropriate values for original quantity, new quantity, original price, and new price.

**Step 2:**
Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price.

**Step 3:**
Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.

**Step 4:**
Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price.

**Step 5:**
Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign.

---

### Calculation Example Using Provided Data:

**1. Fill in Values:**

| | Original | New | | |
|-------|-----------|---------|--------|------|
| Quantity | 446,000 | 321,000 | | |
| Price | $2,750 | $2,880 | | |

**2. Calculate Averages:**

- Average Quantity = (446,000 + 321,000) / 2
- Average Price = ($2,750 + $2,880) / 2

**3. Calculate Changes:**

- Change in Quantity = 321,000 - 446,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 5 images

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

G, 5 Subject - economics
Yes, I do believe people who disagree in regard to normative ethical theory can still reach an agreement on practical ethical questions within the business world. I have had many bosses and many co-workers whom I have not necessarily agreed with when it comes to morals and values outside of work, however, in the workplace most people can agree on practical ethical questions for example sexual harassment, stealing, cheating, client/customer privacy, unethical leadership, etc. I have found that in the workplace you can become friends with people who hold completely different normative ethics than you but still agree on common goals for the business, in fact I think it is a great thing that people who may disagree and have different opinions on ethics come together in the workplace because it makes for different ways of thinking and diversity within the business. please help reply to disussion post
See the image below for econ help.
i am having trouble with this question microeconmics chapter 5 question 4
What's the difference between a macroeconomic circular flow and a microeconomics circular flow? Please include the 2 diagrams.
Hi, I'm having trouble answering this Macroeconomics question, please help. Thank you!
i need help , i keep getting it wrOing and this is my last chance mIcroeconmics question 9
Eco question
What is aresource? the result of choices made by business firms the result of scarcity in the economic system anything people use to make or obtain what they need or want a physical object that can be purchased
i need help with this microeconmics question 6
i need help with this microeconmics question 9
i M having trouble with this macroeconomics question 10