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

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Question

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

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