An experiment is conducted that provides the data in the accompanying table. Toll rate Number of vehicles using the tollway per day $8 10,000 $6 12,000 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6? Round to the nearest hundredth. c. What is the change in total revenue when the toll is decreased from $8 to $6?
An experiment is conducted that provides the data in the accompanying table. Toll rate Number of vehicles using the tollway per day $8 10,000 $6 12,000 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6? Round to the nearest hundredth. c. What is the change in total revenue when the toll is decreased from $8 to $6?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
An experiment is conducted that provides the data in the accompanying table.
| Toll rate | Number of vehicles using the tollway per day |
|---|---|
| $8 | 10,000 |
| $6 | 12,000 |
a. What is the absolute value of
Round to the nearest hundredth.
c. What is the change in total revenue when the toll is decreased from $8 to $6?
Transcribed Image Text:An experiment is conducted that provides the data in the accompanying table.
Number of vehicles using the tollway per day
Toll rate
$8
10,000
$6
12,000
a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6?
Round to the nearest hundredth.
Absolute value of price elasticity of demand: -0.64
Incorrect
b. Price elasticity of demand for the toll road is considered to be
inelastic.
c. What is the change in total revenue when the toll is decreased from $8 to $6?
$ 8000
Incorrect
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
would the answer to the following be .8:
Absolute value of price elasticity of demand ?
Solution
by Bartleby ExpertKnowledge 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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: Indicate the correct options.1. The units of the transport number are Siemens per mole.2. The…
Q: Hello tutor!
Solve this question.
Subject = General Business.
Correct answer otherwise i will give…
Q: Accounting?
Q: Please provide the solution to this general accounting question with accurate financial…
Q: I need help with this general accounting problem using proper accounting guidelines.
Q: I am looking for the correct answer to this general accounting question with appropriate…
Q: I need help in this question properly correct answer otherwise unhelpful.
Q: Insert Format Tools Extensions Help
Normal text ▾ Arial
C
2
10
3
+ BIUA
Student Guide (continued)…
Q: a
->
f(x) = f(x) = [x] show that whether f is continuous function or not(by using theorem)…
Q: Curved arrows are used to illustrate the flow of electrons. Using
the provided starting and product…
Q: Q13: The line CD, C(xc, 6), D(6,yd), the point D is on the right of point C, the value
of horizontal…
Q: Q9: The straight line AB of true length (8) cm, having the following data: A (5, ya) &
B (xb, yb),…
Q: A common alkene starting material is shown below. Predict the
major product for each reaction.
Use a…
Q: Q12: The straight line AB, having the following data: the distance between
projections of the points…
Q: Given a system with an anodic overpotential, the variation of η as a function of current density- at…
Q: Answers
Q: using the theorem of three moments, find all the reactions and supports, I need concise calculations…
Q: Considering the TM example of binary sum ( see attached)do the step-by-step of execution for the…
Q: An urgent care center experienced the average patient admissions shown in the Table below during the…
Q: Find the bending moment diagram for.
structure drawn below using castigliani's Second
theorems.…
Q: Can you solve this 2 question teach me step by step and draw for me