Question 3 Suppose a Palestinian company (Siniora Food Industries Company) sells 20,000 units when the price is l6 NIS, but sells 30,000 units when the price falls to 14 NIS. A. What is the midpoint method for calculating percentage change in the quantity sold (just Calculate the result)? B. What is the midpoint method for calculating percentage change in the price of the products sold ( just Calculate the result)? C. Calculate the price elasticity of demand (Based on set prices). Is demand elastic or inelastic? D. What happens to quantity sold when price decreases 4% (suppose the elasticity demand is constant and equal the value found in part c)?

Question 3 Suppose a Palestinian company (Siniora Food Industries Company) sells 20,000 units when the price is l6 NIS, but sells 30,000 units when the price falls to 14 NIS. A. What is the midpoint method for calculating percentage change in the quantity sold (just Calculate the result)? B. What is the midpoint method for calculating percentage change in the price of the products sold ( just Calculate the result)? C. Calculate the price elasticity of demand (Based on set prices). Is demand elastic or inelastic? D. What happens to quantity sold when price decreases 4% (suppose the elasticity demand is constant and equal the value found in part c)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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