(Table: Price Elasticity) Use Table: Price Elasticity. What is the price elasticity of demand (using the midpoint formula) between $1.25 and $1.00? Table: Price Elasticity Demand and Price Elasticity Quantity Demanded per Period Price $2.50 2.25 25 2.00 1.75 50 75 100 1.50 1.25 125 1.00 150 0.75 175 0.50 200
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- The accompanying table shows the price and monthly demand for barrels of gosum berries in Gondwanaland. Price of gosum berries per barrel Native demand for gosum berries per month $100 0 $90 100 $80 200 $70 300 $60 400 $50 500 $40 600 $30 700 $20 800 $10 900 $0 1,000 A) Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $10 to $20. What kind of elasticity is this value that you computed for the price elasticity of demand, and what does it mean for how demand will change based on a change in price within this price range? (Enter your response here.) B) Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $70 to $80. What kind of elasticity is this value that you computed for the price elasticity of demand, and what does it…2. Calculate the price elasticity for each of the following. State whether price elasticity of demand is elastic, unit elastic, or inelastic. Will revenue rise, decline, or stay the same with the given change in price? The price of pens rises 5%; the quantity demanded falls 10%. a. The price of a ticket to a Boston Red Sox baseball game rises from $10 to $12 a game. The quantity of tickets sold falls from 160,000 tickets to 144,000. C. The price of an economics textbook declines from $50 to $47.50. Quantity demanded rises from 1,000 to 1,075. d The price of water beds rises from $500 to $600. Quantity demanded falls from 100,000 to 80,000.Price Elasticity of Demand (Study Plan 4.1) 1. Rain spoils the strawberry crop, the price rises from $4 to $6 a box, and the quantity demanded decreases from 1,000 to 600 boxes a week. a. Calculate the price elasticity of demand over this price range. b. Describe the demand for strawberries. If the quantity of dental services demanded increases by 10 percent when the price of dental services falls by 10 percent, is the demand for dental services inelastic, elastic, or unit elastic? The demand schedule for hotel rooms is Price (dollars per room. per night) 200 250 400 500 800 Quantity demanded (millions of rooms per night) 100 80 50 40 25 a. What happens to total revenue when the price falls from $400 to $250 a room per night and from $250 to $200 a room per night? b. Is the demand for hotel rooms elastic, inelastic, or unit elastic?
- 2. Imagine that you run a small bakery. In March the price of a cupcake was $2, and you sold 50 per day. In April you increased the price of cupcakes to $3 and you sold 40 per day. 1. Did your revenue increase or decrease? 2. What was the price elasticity of demand to Cupcakes when price increased from $2 to $3. 3. Do you think demand was elastic or inelastic prior to the change in pricesFill out the tables by calculating the price elasticity of demand and of supply (use the mid-point formula). Report elasticities with 2 decimals. Demand and Supply Schedule for Good X: Unit price of x Quantity demanded of x Quantity supplied of x Price elasticity of demand of x (2 decimals) Price elasticity of supply of x (2 decimals) $100 0 5 n/a n/a $95 2 4.5 $90 4 4 $85 6 3.5 $80 8 3 $75 10 2.5 $70 12 2 $65 14 1.5 $60 16 1 $55 18 0.5 Demand and Supply Schedule for Good Y: Unit price of y Quantity demanded of y Quantity supplied of y Price elasticity of demand of y (2 decimals) Price elasticity of supply of y (2 decimals) $100 10 40 n/a n/a $90 11 35 $80 12 30 $70 13 25 $60 14 20 $50 15 15 $40 16 10…Price (dollars per pizza) 10 9 The data in the table above give two points on the demand curve for pizza. When the price of a pizza falls from $10 to $9, at the midpoint between these two prices what is the price elasticity of demand? 1. Calculate the Elasticity of Demand 2. Is the item Elastic, Unit Elastic, or Inelastic 3. Would you advise lowering the price? Explain Quantity demanded (pizzas per day) 100 125 Response should have the flowing format. 1. 2. 3.
- m 18 of 21 > (Figure: The Demand for e-Books) Use Figure: The Demand for e-Books. What is the price elasticity of demand (by the midpoint method) when the price increases from $6 to $8? Figure: The Demand for eBooks Price $10 8 6 8+ 2.33 0.55 0.5 0.67 40 D 50 QuantityDemand for GPS Units 220 200 180- 160 - 140- 120- 100 80 60 40- 20- 40 60 120 160 200 240 260 320 360 400 440 Quantity (GPS units) Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. a. When going from a price of $120 per unit to a price of $100 per unit, what is the price elasticity of demand for GPS units? b. When going from a price of $100 per unit to a price of $120 per unit, what is the price elasticity of demand for GPS units? c. Using the midpoint formula, what is the midpoint price elasticity of demand for GPS units between a price of $120 per unit and a price of $100 per unit? d. When going from a price of $60 per unit to a price of $40 per unit, what is the price elasticity of demand for GPS units? e. When going from a price of $40 per unit to a price of $60 per unit, what is the price elasticity of demand for GPS units? t Using the midpoint formula, what is the…Price ($) 0 1 2 3 4 5 6 7 8 Quantity 56 48 42 35 28 21 14 7 0 Instructions: Round intermediate calculations and round your answers to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. a. The price elasticity of demand for a price change from $2 to $3 is: -0.45 ✔ The slope of the demand curve for a price change from $2 to $3 is: b. The price elasticity of demand for a price change from $3 to $5 is: The slope of the demand curve for a price change from $3 to $5 is: c. The price elasticity of demand for a price change from $6 to $7 is: -7.00 -1.00 → -7.00 x -4.33 The slope of the demand curve for a price change from $6 to $7 is: -700
- 4. Elastic, inelastic, and unit-elastic demand The following graph shows the demand for a good. PRICE (Dollars per unit) 280 180 140 40 0 10 Region Between X and Y Between W and X Between Y and Z True W False I I L 35 45 QUANTITY (Units) 70 Z For each of the regions, use the midpoint method to identify whether the demand for this good is elastic, (approximately) unit elastic, or inelastic. Demand (2) Elastic Inelastic Unit Elastic 1 True or False: The value of the price elasticity of demand is not equal to the slope of the demand curve.Question 40 Suppose the elasticity of demand for watches is -0.60. If the price rises by 12% how much does the quantity demand change by? a. Quantity demanded falls by 7.2% b. Quantity demanded falls by 3.6% c. Quantity demanded falls by 12% d. Quantity demanded falls by 20%Use the demand schedule in the table below to answer the following questions. Use the mid-point method when calculating elasticity. Price ($) 0 1 2 3 4 5 6 7 8 Quantity 56 48 42 35 28 21 14 7 0 Instructions: Round intermediate calculations and round your answers to two decimal places. If you are entering a negative number be sure to include a negative sign (-) in front of that number. a. The price elasticity of demand for a price change from $2 to $3 is: The slope of the demand curve for a price change from $2 to $3 is: b. The price elasticity of demand for a price change from $3 to $5 is: | The slope of the demand curve for a price change from $3 to $5 is: [ c. The price elasticity of demand for a price change from $6 to $7 is: [ The slope of the demand curve for a price change from $6 to $7 is: