The following table gives data on the price of rye and the number of bushels of rye sold in 2019 and 2020. Price Quantity (Bushels) Year (Dollars per bushel) $3.00 $2.00 2019 7,000,000 2020 12,000,000 a. Calculate the change in the quantity of rye demanded divided by the change in the price of rye. Measure the quantity of rye demanded in bushels. The change in the quantity of rye demanded divided by the change in the price of rye in bushels is. (Enter your response as an integer. Include a minus sign if necessary.) b. Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye demanded in millions of bushels. The change in the quantity of rye demanded divided by the change in the price of rye in millions of bushels is. (Enter your response as an integer. Include a minus sign if necessary.) Compared to part a, the answer to part b is in absolute terms (i.e., ignore the sign of these values). c. Finally, assuming that the demand curve for rye did not shift between 2019 and 2020, use the information in the table to calculate the price elasticity of demand for rye. Using the midpoint formula, the price elasticity of demand for rye is |. (Enter your response rounded to two decimal places-do not forget to include the minus sign.)
The following table gives data on the price of rye and the number of bushels of rye sold in 2019 and 2020. Price Quantity (Bushels) Year (Dollars per bushel) $3.00 $2.00 2019 7,000,000 2020 12,000,000 a. Calculate the change in the quantity of rye demanded divided by the change in the price of rye. Measure the quantity of rye demanded in bushels. The change in the quantity of rye demanded divided by the change in the price of rye in bushels is. (Enter your response as an integer. Include a minus sign if necessary.) b. Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye demanded in millions of bushels. The change in the quantity of rye demanded divided by the change in the price of rye in millions of bushels is. (Enter your response as an integer. Include a minus sign if necessary.) Compared to part a, the answer to part b is in absolute terms (i.e., ignore the sign of these values). c. Finally, assuming that the demand curve for rye did not shift between 2019 and 2020, use the information in the table to calculate the price elasticity of demand for rye. Using the midpoint formula, the price elasticity of demand for rye is |. (Enter your response rounded to two decimal places-do not forget to include the minus sign.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following table gives data on the price of rye and the number of bushels of rye sold in 2019 and 2020.
Price
Quantity
(Bushels)
7,000,000
Year
(Dollars per bushel)
$3.00
$2.00
2019
2020
12,000,000
a. Calculate the change in the quantity of rye demanded divided by the change in the price of rye. Measure the quantity of rye demanded in bushels. The change in the quantity of rye demanded divided by the change in the price of rye in bushels
is
(Enter your response as an integer. Include a minus sign if necessary.)
b. Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye demanded in millions of bushels. The change in the quantity of rye demanded divided by the change in
the price of rye in millions of bushels is. (Enter your response as an integer. Include a minus sign if necessary.)
Compared to part a, the answer to part b is
in absolute terms (i.e., ignore the sign of these values).
c. Finally, assuming that the demand curve for rye did not shift between 2019 and 2020, use the information in the table to calculate the price elasticity of demand for rye.
Using the midpoint formula, the price elasticity of demand for rye is |. (Enter your response rounded to two decimal places-do not forget to include the minus sign.)
Enter your answer in each of the answer boxes.
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