2. Calculating the price elasticity of demand: A step-by-stepguideSuppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.Calculate the elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) OriginalNewAverageChangePercentage ChangeQuantity Price Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price.Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price.Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign.Using the midpoint method, the elasticity of demand for laptops is about ____. 2. Calculating the price elasticity of demand: A step-by-stepguideSuppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer salesdecreased from 446,000 to 321,000 laptops.Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. After each step, complete the relevantpart of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)OriginalNewAverageChangePercentage ChangeQuantityPriceStep 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the averageprice.Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculatethe percentage change in price.Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoringthe negative sign.Using the midpoint method, the elasticity of demand for laptops is about

Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops. Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.) Original New Average Change Percentage Change Quantity Price Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price. Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price. Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price. Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price. Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign. Using the midpoint method, the elasticity of demand for laptops is about

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

2. Calculating the price elasticity of demand: A step-by-stepguide

Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales decreased from 446,000 to 321,000 laptops.

Calculate the elasticity of demand between these two price–quantity combinations by using the following steps. After each step, complete the relevant part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)

	Original	New	Average	Change	Percentage Change
Quantity
Price

Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.

Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average price.

Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.

Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate the percentage change in price.

Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring the negative sign.

Using the midpoint method, the elasticity of demand for laptops is about ____.

2. Calculating the price elasticity of demand: A step-by-stepguide
Suppose that during the past year, the price of a laptop computer rose from $2,750 to $2,880. During the same time period, consumer sales
decreased from 446,000 to 321,000 laptops.
Calculate the elasticity of demand between these two price-quantity combinations by using the following steps. After each step, complete the relevant
part of the table with the appropriate answers. (Note: For decreases in price or quantity, enter values in the Change column with a minus sign.)
Original
New
Average
Change
Percentage Change
Quantity
Price
Step 1: Fill in the appropriate values for original quantity, new quantity, original price, and new price.
Step 2: Calculate the average quantity by adding the original quantity and the new quantity, and then dividing by two. Do the same for the average
price.
Step 3: Calculate the change in quantity by subtracting the original quantity from the new quantity. Do the same for the change in price.
Step 4: Calculate the percentage change in quantity demanded by dividing the change in quantity by the average quantity. Do the same to calculate
the percentage change in price.
Step 5: Calculate the price elasticity of demand by dividing the percentage change in quantity demanded by the percentage change in price, ignoring
the negative sign.
Using the midpoint method, the elasticity of demand for laptops is about

Expert Solution

Step 1

Price Elasticity of demand refers to the responsiveness in quantity demanded due to change in price .

And we know price and quantity demanded is inversely related to each other.

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

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.