Solution: To calculate price elasticity of demand for large change in price, we use midpoint method.
The formula to calculate midpoint price elasticity of demand is:
ep = [(q2-q1)/{(q1+q2)/2}]/[(p2-p1)/{(p1+p2)/2}]
a. ep = [(15-5)/{(15+5)/2}]/[(40-50)/{(40+50)/2}] = -4.5
b. ep = [(25-15)/{(25+15)/2}]/[(30-40)/{(40+30)/2}] = -(1/2)/(10/35) = -1.75
c. ep = [(35-25)/{(35+25)/2}]/[(20-30)/{(20+30)/2}] = -(1/3)/(10/25) = -0.83
d. ep = [(45-35)/{(35+45)/2}]/[(10-20)/{(20+10)/2}] = -(1/4)/(10/15) = -0.375
Check my work The data below represent a demand schedule. Quantity Demanded Product Price $50 Determine...
The data below represent a demand schedule. Quantity Demanded Product Price $50 10 15 20 20 1025 Determine the price elasticity of demand between each of the following prices: Instructions: Round your answers to 2 decimal places. Enter your answers as pos a. Between P1 = $50 and P2 = $40. Ed= b. Between P1 = $40 and P2 = $30, Ed= c. Between P1 = $30 and P2 = $20, Ed= d. Between P1 = $20 and P2 =...
Check my work 00 The data below represent a demand schedule. Product Price 2 points $40 35 Quantity Demanded 5 10 15 20 25 30 eBook 25 20 Print References Determine the price elasticity demand between each of the following prices: Instructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute values). a. Between P - $40 and P2 - $35, Ed- b. Between P = $35 and P2 = $30. Ed= c. Between A-$30...
apter 6 Homework Saved 1 The data below represent a demand schedule. Product Price $50 40 Quantity Demanded 5 nts eBook 30 20 15 25 35 45 Print 10 ferences Determine the price elasticity of demand between each of the following prices: Instructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute values), a. Between A = $50 and P2 = $40. Ed- b. Between P,= $40 and P2 - $30. E- Prev 1 of...
3 The data below represent a demand schedule. Quantity Demanded Product Price 10 points 5 eBoak riee References . In the diagram below, drawa demand curve. Instructions: Use the tool provided "Demand' to graphically show demand. This line should anly contain the two endpoints Demand Schedule Toole Demand 5 6 Quantity demanded Product price 10l price changes b. Use the midpoint formula for Edto determine price elasticlity of demand for each of the four possible Instructions: Round your answers to...
The table below shows the demand schedule for Bluth Frozen Bananas. Point Price Quantity Demanded A $0.50 200 B $1.00 160 C $1.50 120 D $2.00 80 E $2.50 40 Calculate the price elasticity of demand for the situations below. Note: Write your answers as decimals, not fractions. For example, if you come up with an answer of 1/2, write 0.5 or -0.5. Round to the nearest tenth, so if you get an answer of 2.55, round it to 2.6....
Refer to the demand schedule below: 3 Price ($) Quantity demanded 80 70 60 50 40 30 20 10 50 100 150 200 250 300 350 400 5 points eBook References Price increases from $60 to $70 Demand is (Click to select)and total revenue (Click to select) Mc Graw Hill <Prev 3012. LAB-Experime docx ︿ mth+241-010+s..npa h A MACRO.docx
Refer to the demand schedule below: 3 Price ($) Quantity demanded 80 70 60 50 40 30 20 10 50 100 150 200 250 300 350 400 5 points eBook References Price increases from $60 to $70 Demand is (Click to select)and total revenue (Click to select) Mc Graw Hill <Prev 3012. LAB-Experime docx ︿ mth+241-010+s..npa h A MACRO.docx
19. Price elasticity of demand is defined as the a. Percentage change in quantity demanded induced by a 1 percent change in price. (Or, the percentage change in quantity demanded divided by the percentage change in price) b. Maximum amount consumers will pay for increased quantity. c. Percentage amount by which price can change without affecting the quantity demanded. Percentage increase in price induced by a decrease in demand. d. Percentage increase in price induced by a decrease in demand....
1.If the price elasticity of demand for hamburgers is 1.5 and the quantity demanded of hamburgers equals 40,000, what will happened to the quantity of hamburgers demanded if the price increases by 10%? what is the change in quantity? Briefly explain your answer. 2. Sport team want to boost revenues from ticket sales next academic year and hire you to advise the team whether to raise or lower ticket prices next year. If the elasticity of demand for Tiger games...
Refer to the demand schedule below: Quantity demanded Price ($) 80 70 60 50 100 150 200 250 300 350 400 0 Price increases from $40 to $50. Demand is (Click to select) , and total revenue (Click to select)