The chart below shows how annual electricity for an average Ontario household would vary withthe price paid for electricity. Calculate the arc elasticity of demand for electricity for thisaverage houschold. Also, in the final column, calculate the total revenue from sales of clectricityto this household.PriceQuantity DemandedKwh/yearTotal Revenue$/kwhElasticity of Demand$0.251200-0.36$0.201300$0.151400$0.101500$0.051600Hint: The own price elasticity of demand is the percentage change in the quantity demandeddivided by the percentage change in the price.What factors do you think influence the elasticity of demand for this household?

The price elasticity of demand measures the percentage by which the quantity demanded of a good or…

The chart below shows how annual electricity for an average Ontario household would vary with the price paid for electricity. Calculate the arc elasticity of demand for clectricity for this average houschold. Also, in the final column, calculate the total revenue from sales of clectricity to this household. Quantity Demanded Kwh/year Price Total Revenue $/kwh Elasticity of Demand $0.25 1200 -0.36 $0.20 1300 $0.15 1400 $0.10 1500 $0.05 1600 Hint: The own price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. What factors do you think influence the elasticity of demand for this household?

The chart below shows how annual electricity for an average Ontario household would vary with the price paid for electricity. Calculate the arc elasticity of demand for clectricity for this average houschold. Also, in the final column, calculate the total revenue from sales of clectricity to this household. Quantity Demanded Kwh/year Price Total Revenue $/kwh Elasticity of Demand $0.25 1200 -0.36 $0.20 1300 $0.15 1400 $0.10 1500 $0.05 1600 Hint: The own price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. What factors do you think influence the elasticity of demand for this household?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Remaining Time: 28 minutes, 36 seconds. v Question Completion Status: QUESTION 1 If the price of Pepsi-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then, according to the midpoint formula, the value of price elasticity of demand for Pepsi-Cola is OA 2 O B. 3 OC. 0.25 OD. 1 O E. 0.5 QUESTION 2 You manage a popular nightclub and lately revenues have been disappointing. Your bouncer suggests that raising drink prices will increase revenues, but your bartender suggests that decreasing drink prices will increase revenues. You aren't sure who is right, but you do know that: O A. your bouncer thinks the demand for drinks is elastic, while your bartender thinks the demand for drinks is inelastic. OB. hoth the houncer and hartender think the demand for drinks is elastic Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Windo O Type here to search 144 近

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