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 5QR
Related questions
Question
![c. What is the change in total revenue when the toll is decreased from $8 to $6?
8000
Incorrect](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2da01db9-5022-430b-be89-68b40c7159cc%2F2bb9b141-2e87-4140-9e60-b036f6444206%2F2wlculk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:c. What is the change in total revenue when the toll is decreased from $8 to $6?
8000
Incorrect
![Elasticity: Measuring Responsiveness - End of Chapter Problem
An experiment is conducted that provides the data in the accompanying table.
Number of vehicles using the tollway per day
10,000
12,000
Toll rate
$8
$6
a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)?
Round to the nearest hundredth.
Absolute value of price elasticity of demand:
0.58
Incorrect
b. Price elasticity of demand for the toll road is considered to be
inelastic.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2da01db9-5022-430b-be89-68b40c7159cc%2F2bb9b141-2e87-4140-9e60-b036f6444206%2Fw171fs7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Elasticity: Measuring Responsiveness - End of Chapter Problem
An experiment is conducted that provides the data in the accompanying table.
Number of vehicles using the tollway per day
10,000
12,000
Toll rate
$8
$6
a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6 (use the midpoint method)?
Round to the nearest hundredth.
Absolute value of price elasticity of demand:
0.58
Incorrect
b. Price elasticity of demand for the toll road is considered to be
inelastic.
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