Question

The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculated, the price elastic

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The price elasticity of demand will be:- 0.5

WORKING:-pice nod sises saom to 3 12 ve, we have To Find out the Paic gxe y.Rocenrage Change n quami y.Pesce moge Chomge in sice 01 ceguositung the above sespecive value in the omalb Pacentoge Change in guanting dtemand o t110)/2 90-I1 :20 1O0 pe xceniage Cha

Add a comment
Know the answer?
Add Answer to:
The price of a good rises from $8 to $12, and the quantity demanded falls from...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • For a certain good A, if the price falls from 6 to 4, the quantity demanded...

    For a certain good A, if the price falls from 6 to 4, the quantity demanded rises from 8000 to 12000. (i) Calculate the price elasticity of demand by using midpoints. Explain the meaning of the value of the elasticity found. (ii) What happens to turnover (Price * Quantity) as a consequence of the price change?

  • Coluole CICO CILJUCILY UPUCHUHU. DOUJOU TO 6.11. If the quantity demanded of a good rises from...

    Coluole CICO CILJUCILY UPUCHUHU. DOUJOU TO 6.11. If the quantity demanded of a good rises from 4 to 8 when the price falls from $8.00 to $6.00, calculate the price elasticity of demand. Does total revenue rise or fall?

  • QUESTION 2 Quantity demanded falls as the price rises and rises as the price falls, so...

    QUESTION 2 Quantity demanded falls as the price rises and rises as the price falls, so we say that a. quantity demanded is a function of demand e b. price is determined by quantity demanded o c. quantity demanded is negatively related to the price d. quantity demanded is determined by quantity supplied

  • 7. If the price of orange juice rises 10%, and as a result the quantity demanded...

    7. If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is O A. inelastic. OB. -1.25 O c. Both A and B above. OD. Neither A nor B above. 18. If the price of orange juice rises 10% and as a result the quantity demanded falls by B%, the price elasticity of demand for orange juice is O A. - 10.0. OB. -0.80....

  • suppose that when the price of donuts rises 10%, the quantity demanded of donuts falls 3%.Based...

    suppose that when the price of donuts rises 10%, the quantity demanded of donuts falls 3%.Based on his information, what is the approximate absolute price elasticity of demand for donuts

  • 1. Suppose that when the price of a good is s15, the quantity demanded is 4o...

    1. Suppose that when the price of a good is s15, the quantity demanded is 4o units, and when the price falls to s6, the quantity increases to 6o units. The price elasticity of demand near a price of s6 and a quantity of 60 can be calculated as: A) -5/6 C)-2/9 B)-2 D) -9/2 2. Which of the following statements is true? A) The price elasticity of demand is positive when there is an inverse relationship betweern price and...

  • Question 11 0.16 pts If the price and quantity for an inferior good, Good X, is...

    Question 11 0.16 pts If the price and quantity for an inferior good, Good X, is $8 and 6 units at the original equilibrium, what is one possibility for the new equilibrium of Good X if we see income increase and all other factors stay constant? O $6 and 8 units O $10 and 8 units $6 and 4 units O $10 and 2 units O $10 and 4 units Question 12 0.16 pts According to the law of demand,...

  • 5. The price of a good rises by 12 percent and the price elasticity of demand...

    5. The price of a good rises by 12 percent and the price elasticity of demand for the good is -0.85. Which of the following is a correct interpretation of these facts? A. When the price rises by 12 percent, the quantity demanded decreased by 0.85 percent. B. For each 1 percent that the price rose, the quantity demanded decreased by 10.2 percent. C. For each 0.85 percent that the price rose, the quantity demanded decreased by 1 percent. D....

  • 12. If the price decreases from $10 to $8 and the quantity demanded increases from 50...

    12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...

  • Suppose that the per-unit price of good X is fixed at $5. When the price of...

    Suppose that the per-unit price of good X is fixed at $5. When the price of good Y equals $8, the quantity demanded of good X is 12. When the price of good Y rises to $10, the quantity demanded of good X falls to 10. The cross-price elasticity of demand for good X with respect to the price of good Y between these two points, calculated using the midpoint formula, equals O 0.82 O -0.82 O 1.22 0 -1.22

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT