Baylor Lumber sold 10 ft long metal feed bunks at $300 per bunk last month. They sold 20 bunks. This month they raised the price to $349 per bunk and sales dropped to 12 bunks. What is the own-price elasticity of demand for 10 ft. feed bunks at Baylor Lumber using the mid-point formula? What does this say about the demand?

Baylor Lumber sold 10 ft long metal feed bunks at $300 per bunk last month. They sold 20 bunks. This month they raised the price to $349 per bunk and sales dropped to 12 bunks. What is the own-price elasticity of demand for 10 ft. feed bunks at Baylor Lumber using the mid-point formula? What does this say about the demand?

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: Long run elasticity of supply is known as

A: Answer: Note: the question seems to be asking about whether the long-run supply is elastic or…

Q: Mcdonald’s, a big burger joint, is charging $6 for its very famous Big Mac hamburger and selling…

A: PED i.e price elasticity of demand measures the degree of responsiveness of demand of a commodity…

Q: When

A: Given information, Initial quantity sold (demanded): 300 Final quantity sold (demanded): 420…

Q: A local coffee house is considering increasing the price on a cup of coffee from $1.59 to $1.89 per…

A: Given information, Initial price: $1.59 Final price: $1.89 Initial quantity demanded: 350 Final…

Q: Consider a company, StarBreads, that sells bread in a competitive market. The price of bread is…

A: Elasticity is given as

Q: What does price elasticity of supply measure? how responsive price is to a change in quantity…

A: The total amount of a certain commodity or service available to consumers is referred to as supply.…

Q: Calculate the price elasticity of supply between points A and B using the mid-point method. Round…

A: Elasticity of supply is used to determine the changes in the quantity supplied of the good due to…

Q: Until recently, Cynthia's Cycles rented bicycles for $8 and they rented 320 bicycles per month. They…

A: Elasticity of demand is used to measure the responsiveness of change in the quantity demanded of a…

Q: price elasticity of supply over the $5-$8 price range is?

A: The percentage change in the quantity supplied in the economy is divided by the percentage change in…

Q: _2. A poultry rancher discovered that when she increased the price of organic eggs from $0.75 to…

A: Price elasticity of demand measures the extent up to which the quantity demanded changes due to a…

Q: The marketing director of the Reicken Furniture Company has determined that the demand curve for one…

A: To solve this given question, use the concept of price elasticity of demand. Price Elasticity of…

Q: You own a miniature golf course on the boardwalk in Ocean City, New Jersey. Right next to you on the…

A: In this scenario, you own a dinosaur-themed miniature golf course on the boardwalk in Ocean City,…

Q: Suppose price of a commodity rises by 10% , then supply by a firm increases by 50% Calculate…

A: # The elasticity of supply is a measure of the change in quantity supplied due to change in price.…

Q: Consider the following demand schedule. Price Quantity Demanded $0 1,000 $3…

A: The unitary elastic means the proportion of change in demand for the products and services to be the…

Q: In Oxnard’s market for textbooks, if the price of textbooks goes up by 25% and the quantity demanded…

A: Given information, Percentage change in price: 25% Percentage change in quantity demanded: 75% To…

Q: The cross - price elasticity of demand between Texaco gasoline and Mobil gasoline sold at the same…

A: The issue is to determine the cross-price elasticity of demand between Texaco gas and Mobil fuel…

Q: A firm revenue rises from $400 to $500 when the price of its product rises from $20 per unit to $25…

A: we are given that initial total revenue =$400 final total revenue =$500 initial price =$20 final…

Q: Company XYZ has developed a new product called ABC. The market demand for this product is given as…

A: Only 3 subparts will be solved as per the guidelines. Please post the remaining part separately or…

Q: Show the relationship between the elasticity of demand for a firm’s product and its marginal…

Q: When the price of a good rises from $20 per unit to $30 per unit,the revenue of the firm producing…

A: As per the question we are given that P1= $20 P2=$30 TR1=$100 TR2=$300 we have to find price…

Q: A firm sales 1000 units of a product at a price of $10 per unit. It's price elasticity of supply is…

A: Given information: Total sales unit = 1000 units Price per unit = $10 per unit The elasticity of…

Q: Over the last three years, Christmas tree prices have increased from an average of $35 per tree to…

A: Elasticity of supply is calculated as the difference between the percentage change in price and the…

Question

Baylor Lumber sold 10 ft. long metal feed bunks at $300 per bunk last month. They
sold 20 bunks. This month they raised the price to $349 per bunk and sales dropped to 12
bunks. What is the own-price elasticity of demand for 10 ft. feed bunks at Baylor Lumber
using the mid-point formula? What does this say about the demand?

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: Define elasticity

VIEW

Step 2: Calculate own price elasticity

VIEW

Solution

VIEW

Trending now

This is a popular solution!

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

Refer to Table 1. Using the midpoint method, if the price falls from $160 to $120, the absolute value of the price elasticity of demand is a 0.43 b 2.33 c 0.29 d 0.67
Which of the following items would have a low price elasticity? A Yacht Gasoline Dinner at an expensive restaurant A new Mercedes Benz
At a price of $35, Davidson Cycles rented 22 bicycles. When it increased its rental price to $45, 18 bicycles were rented. Calculate the price elasticity of demand for bicycle rentals using the midpoint formula. (Solution options are given as negatives, the book would have you take the absolute value) O -1.25 O -2.42 O -0.80 O -0.91
XYZ Co. makes a processor that requires a metal that can be found in a single mine in Peru. Do you expect the price elasticity of supply for this processor to be elastic or inelastic? Explain your answer in approximately 1-4 sentences.
Suppose there is a 10% increase in the price of apples. In the immediate short run this elicits a 1% increase in the quantity of apples supplied. Calculate the elasticity of supply. Is this elasticity of supply elastic or inelastic? Why do you think this is? Now assume that over a ten year period a 10% increase in the price of apples leads to a 15% increase in the quantity of apples supplied. Calculate this elasticity of supply. Is it elastic or inelastic? Explain the difference in your two measures of elasticity.
George has been selling 7,000 T-shirts per month for $7.00. When he increased the price to $9.00, he sold only 6,000 T-shirts. Which of the following best approximates the price elasticity of demand? -0.6769 -0.6154 -0.3077 -0.5538 Suppose George's marginal cost is $4 per shirt. Before the price change, George's initial price markup over marginal cost was approximately . George's desired markup is . Since George's initial markup, or actual margin, was than his desired margin, raising the price was
The short run elasticity of demand between palm oil and soybean oil is 0.103. The quantity demanded for palm oil is 10 million metric tonnes at the current price USD 1480 per metric ton of soybean oil. Calculate the quantity demanded of palm oil if the price per metric ton of soybean oil decreases to USD 1400.
Explain classification of linear supply functions by types of elasticities.
Find the elasticity of demand when 15 water bottles are sold.
You have been hired as a consultant for the United Potato Growers. Your research indicates that fresh potatoes have an own price elasticity of -.12 and potatoes in general are -.29. Would potato growers be better off increasing production or decreasing production? Explain why.
Blue Co. makes a processor that requires a metal that can only be found in a single mine in Peru. Do you expect the price elasticity of supply for this processor to be elastic or inelastic? Explain in 1-4 sentences.
ADVANCED ANALYSIS Currently, at a price of $2 each, 300 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is unit-elastic (Es = 1). In the long run, a price increase from $2 to $4 has an elasticity of supply of 1.50. (Hint: Apply the midpoints approach to the elasticity of supply.) a. How many popsicles will be sold each day in the short run if the price rises to $4 each? per day. b. So how many popsicles will be sold per day in the long run if the price rises to $4 each? per day. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.