None Calculate the elasticity of demand, if the demand function isat the point where p = 10 and Q = 10.Q=200-10p+4Y,The elasticity of demand is ε = -10. (Enter your response rounded to one decimal place and include a minus sign.)Calculate the elasticity of demand, if the demand function isQ=20p-1.5The elasticity of demand is &= ☐ (Enter your response rounded to one decimal place and include a minus sign.)

1. We apply the following formula to get the elasticity of demand:E d= % Change in Demanded Quantity…

Answered: Calculate the elasticity of demand, if…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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What does a price elasticity of demand of 0.39 mean?
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
Suppose you are in change of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your companys product at the current price is 1.4, would you advise the company to raise the price, lower the price, or to keep the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer.
What would the gasoline price elasticity of supply mean to UPS or FedEx?
Why is the demand curve with constant unitary elasticity concave?
In this problem, p is in dollars and q is the number of units. Suppose that the demand for a product is given by 2p²q = 10,000 + 5000p2. (a) Find the elasticity when p $50 and q = 2502. (Round your answer %3D (b) Tell what type of elasticity this is: unitary, elastic, or inelastic. Demand is unitary elastic. Demand is elastic. O Demand is inelastic. (c) How would revenue be affected by a price increase? An increase in price decreases revenue. An increase in price increases revenue. Revenue is unaffected by price.
Suppose Amazon lowers its Prime membership monthly fee from $12.99 to $9.99. The price elasticity of demand for Amazon membership subscription in this price range is estimated at -0.8. You predict that the number of Prime subscriptions will (increase/decrease) increase Aby (enter a number rounded to one digit after the decimal point, e.g., 22.2) A/ % and that Amazon's revenue will (increase/decrease) A by (enter a number rounded to one digit after the decimal point, e.g., 9.9) A %.
These questions require application of economic theory relating to elasticity of demand andsupply. All calculations must be shown in full. Answer ALL the questions.Q.3.1 A store that sells maize meal discovers that when the price of 1kg maize meal IsR24 per kilogram, the quantity demanded is 306 kgs per week. When the pricedecreases to R21 per kg, then the sales increase to 340 kgs per week. Use thisinformation to answer questions Q.3.1.1 and Q.3.1.2 below.Q.3.1.1 Determine the price elasticity of maize meal using the Arc method. (5)Q.3.1.2 Discuss the relationship between the price elasticity of maize mealand the total revenue the store received from the sales. Advise thestore on an appropriate pricing strategy.(7)Q.3.2 The store selling maize meal makes a further discovery, when the price of ricechanges from R30 per kg to R26 per kg, then the quantity of rice demandeddecreases from 1360 kg per month to 1238 kg per month. Use this informationto answer Q.3.2.1 and Q.3.2.2 below.Q.3.2.1…
6:36 A webassign.net In this problem, p is in dollars and g is the number of units. Suppose that the demand for a product is given by pa + p + 100g (a) Find the elasticity when p = $401. (Round your answer to two decimal places.) (b) Tell what type of elasticity this is. O Demand is elastic. Demand is inelastic. O Demand is unitary elastic. (c) How would a price increase affect revenue? O Revenue is unaffected by price. An increase in price will result in an increase in total revenue. O An increase in price will result in a decrease in total revenue. Need Help? Read It
(1) if the price of orange juice rise 10% , and a as result quantity demanded falls by 10% , then one can conclude that the demand for orange juice (a) is perfectly elastic (b) is inelastic (c) has a constant elasticity (d) has a unitary elasticity
(1 point) The demand function for a certain item is x = (p+2)ºe¯P Use interval notation to indicate the range of prices corresponding to elastic, inelastic, and unitary demand. NOTE: When using interval notation in WeBWork, remember that: You use 'inf' for ∞ and '-inf' for -∞. And use 'U' for the union symbol. a) At what price is demand of unitary elasticity? Price: b) On what interval of prices is demand elastic? Interval: c) On what interval of prices is demand inelastic? Interval:

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