Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Use the demand schedule, graph, and the elasticity formula to answer one question. POPCORN Price \times Quantity
Demanded
Total Revenue $0.50 1 $
0.50 0.45 2 0.90 0.40 4 1.60 0.35 6 2.10 0.30 8 2.40 0.25 12 3.00 0.20 16 3.20 0.15 20 3.00 0.10 25 2.50 0.05 30 1.50 A
graph relates price per ounce along the y axis to quantity demanded in ounces per shows along the x axis."The x axis
ranges from 0 to 30 and the y axis ranges from 0 dollars to 0.55 dollars. The line passes through the points: 1, $
0.50. 2, 0.45.4, 0.4.6, 0.35.8, 0.3.12, 0.25.16, 0.2.20, 0.15.25, 0.1.30, 0.05. " Economists estimate price elasticities
more precisely by using average price and quantity to compute percentage changes. The formula below describes this
method. Price Elasticity of Demand, Midpoint Formula: E = percentage change in quantity demanded - percentage
change in price, in absolute value where, percentage change in quantity demanded = (Q2 Q1) [(Q1 + Q2) -: 2]
percentage change in price = (P2 - P1) - [(P1 + P2) - 2] Note that the denominator in each part uses the average
quantity or the average price. Using the table, graph, and formula, compute E for a popcorn price increase from 15 cents
to 25 cents per ounce. Instructions: Round your response to one decimal place.
-:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73d7df04-69c7-4c01-b903-8cc796948e0a%2Fe903e5ba-3362-4f2a-9524-23b01dfa2462%2F068h31uo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the demand schedule, graph, and the elasticity formula to answer one question. POPCORN Price \times Quantity
Demanded
Total Revenue $0.50 1 $
0.50 0.45 2 0.90 0.40 4 1.60 0.35 6 2.10 0.30 8 2.40 0.25 12 3.00 0.20 16 3.20 0.15 20 3.00 0.10 25 2.50 0.05 30 1.50 A
graph relates price per ounce along the y axis to quantity demanded in ounces per shows along the x axis."The x axis
ranges from 0 to 30 and the y axis ranges from 0 dollars to 0.55 dollars. The line passes through the points: 1, $
0.50. 2, 0.45.4, 0.4.6, 0.35.8, 0.3.12, 0.25.16, 0.2.20, 0.15.25, 0.1.30, 0.05. " Economists estimate price elasticities
more precisely by using average price and quantity to compute percentage changes. The formula below describes this
method. Price Elasticity of Demand, Midpoint Formula: E = percentage change in quantity demanded - percentage
change in price, in absolute value where, percentage change in quantity demanded = (Q2 Q1) [(Q1 + Q2) -: 2]
percentage change in price = (P2 - P1) - [(P1 + P2) - 2] Note that the denominator in each part uses the average
quantity or the average price. Using the table, graph, and formula, compute E for a popcorn price increase from 15 cents
to 25 cents per ounce. Instructions: Round your response to one decimal place.
-:
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