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Answer number 2 with full solution

Answer number 2 with full solution

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer number 2 with full solution

Compute the following word problems and identify what type of elasticity is PED of the each. Show your answers using both formula and midpoint formula. point elasticity 1. Last month, at P14 per kilowatt hour (KWH), а household used to consume 380 KWH. However, price of electricity has risen to P20 per KWH that resulted to decreased consumption of 340 KWH. 2. A fruit vendor used to sell 400 oranges at P12 each. Due to inadequate supply, the price increased to P16 that led to selling 200 oranges. 3. Using the point elastic formula, find the value of Q1 if Q2=10, P1=30, P2=40, and PED=1.5
Transcribed Image Text:Compute the following word problems and identify what type of elasticity is PED of the each. Show your answers using both formula and midpoint formula. point elasticity 1. Last month, at P14 per kilowatt hour (KWH), а household used to consume 380 KWH. However, price of electricity has risen to P20 per KWH that resulted to decreased consumption of 340 KWH. 2. A fruit vendor used to sell 400 oranges at P12 each. Due to inadequate supply, the price increased to P16 that led to selling 200 oranges. 3. Using the point elastic formula, find the value of Q1 if Q2=10, P1=30, P2=40, and PED=1.5
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