Question 3 Suppose a Palestinian company (Siniora Food Industries Company) sells 20,000 units when the price is l6 NIS, but sells 30,000 units when the price falls to 14 NIS. A. What is the midpoint method for calculating percentage change in the quantity sold (just Calculate the result)? B. What is the midpoint method for calculating percentage change in the price of the products sold ( just Calculate the result)? C. Calculate the price elasticity of demand (Based on set prices). Is demand elastic or inelastic? D. What happens to quantity sold when price decreases 4% (suppose the elasticity demand is constant and equal the value found in part c)?
Question 3 Suppose a Palestinian company (Siniora Food Industries Company) sells 20,000 units when the price is l6 NIS, but sells 30,000 units when the price falls to 14 NIS. A. What is the midpoint method for calculating percentage change in the quantity sold (just Calculate the result)? B. What is the midpoint method for calculating percentage change in the price of the products sold ( just Calculate the result)? C. Calculate the price elasticity of demand (Based on set prices). Is demand elastic or inelastic? D. What happens to quantity sold when price decreases 4% (suppose the elasticity demand is constant and equal the value found in part c)?
Chapter1: Introducing The Economic Way Of Thinking
Section1.A: Applying Graphics To Economics
Problem 2SQP
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ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning