Using the midpoint formula, calculate elasticity for each of the following changes in demand. Demand for: a. Cashews b. Portable hard drive (4 terabytes) c. 6-gauge copper wire d. Toothpaste P₁ $7.50 per pound $80 $0.60 per lineal foot $2.00 per tube P₂ $6.00 per pound $120 $0.45 per lineal foot $2.40 per tube Q₁ 800 pounds per month 75 per year 2,500 lineal feet per week 10 tubes per month Q₂ 1,000 pounds per month 65 per year 5,000 lineal feet per week 9 tubes per month

Using the midpoint formula, calculate elasticity for each of the following changes in demand. Demand for: a. Cashews b. Portable hard drive (4 terabytes) c. 6-gauge copper wire d. Toothpaste P₁ $7.50 per pound $80 $0.60 per lineal foot $2.00 per tube P₂ $6.00 per pound $120 $0.45 per lineal foot $2.40 per tube Q₁ 800 pounds per month 75 per year 2,500 lineal feet per week 10 tubes per month Q₂ 1,000 pounds per month 65 per year 5,000 lineal feet per week 9 tubes per month

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Use the midpoint method to compute the price elasticity on D1. P $10 B $5 A D1 D2 80 90 100 From point A to point B, the price elasticity is:
The price elasticity of demand for Craig's chocolate chip cookies is 1.5. Craig wants to increase his total revenue. Would you recommend that Craig raise or lower his price of chocolate chip cookies? Craig should the price of his chocolate chip cookies because the demand for chocolate chip cookies is A. lower; elastic B. lower; unit elastic C. raise; elastic D. raise; inelastic E. lower; inelastic
Jose owns a donut business in Los Angeles, and he wants to increase his total revenue. He knows that, when donuts are $1, he sells 200 an hour, and when he lowers the price to $0.75, he sells 280 an hour. A) Using the midpoint method, compute the price elasticity of demand for Jose’s donuts. Please show the formula used for understanding. B) Based on (A) is demand for Jose’s donuts elastic or inelastic? How do you know? Explain C) Should he raise or lower the price to generate more revenue.
e. Is the price elasticity of demand between $110 and $130 elastic, unit elastic, or inelastic? f. Will Erin's total revenue rise if she increases the price from $110 to $130?
Price Elasticity of Demand 1. For each of the following pairs of goods, identify the good that you would expect to be more elastic. Briefly explain your answers (1-2 sentences). a) Eggs versus butter. b) Speedboats versus lightbulbs. c) Orange juice in general versus Tropicana brand of orange juice. d) Trips by your Congressperson to D.C. versus vacation trips by you to Hawaii.
Define cross elasticity. Suppose a consumer's demand for Rim detergent decreases from 5kg to 4kg as income increases from Tk. 50.000 to Tk. 55,000. Now, calculate the income elasticity and explain the elasticity coefficient.
Consider the cross-price elasticities of demand for four pairs of goods: For goods A & B, the cross-price elasticity of demand is -2.0 For goods C & D, the cross-price elasticity of demand is -0.5 For goods E & F, the cross-price elasticity of demand is 1.5 For goods G & H, the cross-price elasticity of demand is 0.2 Which pair of goods are close (strong) substitutes? A&B C&D E&F G&H
H+ 12:52 ECS1500-Exam-P... 6. Which of the following is most likely to have a high-income elasticity of demand? 1. Meals at classy restaurants 2. Lunches at fast food restaurants 3. Packed lunches from home 4. Apples 7. If the price elasticity of demand is 0,5 then a 20% price hike will lead to a 1. 5% decrease in quantity demanded 2. 10% decrease in quantity demanded 3. 20% decrease in quantity demanded 4. 40% decrease in quantity demanded 8. If a 10% price hike leads to a 30% increase in quantity supplied, then the 1. price elasticity of demand to 0,33 2. price elasticity of supply to 0,33 3. price elasticity of demand is 3,0 4. price elasticity of supply is 3,0 9. Which of the fallowing would not cause the demand curve for Varsity Cup (rugby) tickets to shift? 1. An increase in the price of professional rugby tickets 2. A decrease in the price of university hockey tickets 3. An increase in the price of Varsity Cup tickets 4. A drop in student incames 10. Suppose that the market for…
Consider the cross-price elasticities of demand for four pairs of goods: For goods A & B, the cross-price elasticity of demand is -2.0 For goods C & D, the cross-price elasticity of demand is -0.5 For goods E & F, the cross-price elasticity of demand is 1.5 For goods G & H, the cross-price elasticity of demand is 0.2 Which pair of goods are weak complements? Group of answer choices G & H C & D E & F A & B
Use the midpoint method to compute the price elasticity on D1. $10 в $5 A D1 D2 80 90 100 The percent change in quantity is:
Use the mid-point method to calculate the elasticity. 1. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 10, what is the elasticity? 2. If the price of tacos increases from $2.00 to $3.00 and the Quantity Demanded decreases from 20 to 18, what is the elasticity? Explain your work.