Use the graph for Yolanda's Frozen Yogurt Stand to answer the questions that follow. Use the midpoint formula to calculate the price elasticity of demand for D, between point A and point C and the price elasticity of demand for D₂ between point A and point B. Price elasticity of demand for D₁ = (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Price (dollars per cone) 4.00 3.75- 3.50 3.25 3.00- 2.75 P 2.50 2.25 2.00 1.75 P2 1.50+ 1.25- 1.00 0.75 0.50- 0.25 0.00 0.0 10.0 B 25 D₂ C 35 20.0 30.0 Quantity (cones per day) 40.0 D₁

Use the graph for Yolanda's Frozen Yogurt Stand to answer the questions that follow. Use the midpoint formula to calculate the price elasticity of demand for D, between point A and point C and the price elasticity of demand for D₂ between point A and point B. Price elasticity of demand for D₁ = (Enter your response rounded to two decimal places. Be sure to include the minus sign.) Price (dollars per cone) 4.00 3.75- 3.50 3.25 3.00- 2.75 P 2.50 2.25 2.00 1.75 P2 1.50+ 1.25- 1.00 0.75 0.50- 0.25 0.00 0.0 10.0 B 25 D₂ C 35 20.0 30.0 Quantity (cones per day) 40.0 D₁

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the local pizza parlor prices pizzas at $12 each, it generally sells 7000 pizzas per month. If it lowers the price to $10, sales increase to 9000 pizzas per month. Given this information, we know that the price elasticity of demand for pizza is about 1.38, and an increase in price from $10 to $12 results in a decrease in total revenue. 0.72, and an increase in price from $10 to $12 results in an increase in total revenue. 0.72, and an increase in price from $10 to $12 results in a decrease in total revenue. 1.38, and an increase in price from $10 to $12 results in an increase in total revenue.
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According to the U.S. Department of Energy, the average price of gasoline in the U.S. fell by 14% in 2015. The number of hybrid electric vehicles (HEV) sold in the U.S. fell by 36% in the same year. Calculate the cross-price elasticity of demand for HEVs and gasoline. Round answer to one place after the decimal.
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