The following table shows the demand schedule for a particular good. Price Quantity $20 0 $16...
The following table shows the demand schedule for a particular good.
| Price | Quantity |
| $20 | 0 |
| $16 | 3 |
| $12 | 6 |
| $8 | 9 |
| $4 | 12 |
| $0 | 15 |
a) Refer to the table above. Using the midpoint method, calculate the price elasticity of demand when price rises from $12 to $16.
b) Which kind of elasticity did you find? Explain.
c) If price increases from $12 to $16, calculate the total revenue for both price levels.
d) What happens to total revenue when the price increases?
e) Is it consistent with the elasticity that you calculated in part a)? Explain.
Homework Answers
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The following table shows the demand schedule for a particular
good.
Price
Quantity
$20
0
$16...
The table below shows a hypothetical demand and supply schedule for CD players. Price, K Quantity...
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The table shows the demand schedule for a particular product. Price Quantity Demanded (Units) (Dollars per...
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Suppose that your demand schedule for compact discs is as follows: PRICE Quantity Demanded $ 8...
Suppose that your demand schedule for compact discs is as follows: PRICE Quantity Demanded $ 8 10 12 14 16 Use the midpoint method to calculate your price elasticity of demand as the price of compact discs 40 32 24 16 increases from $8 to $10.
Just problem 13 10. Given the following demand schedule, calculate the price elasticity of demand for...
Just problem 13
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Part C: Price Elasticity of Demand 10. Given the following demand schedule, calculate the price elasticity...
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Refer to Table 5-4 below. Given total revenue and price, as price rises from $14 to $16, compute the price elasticity of...
Refer to Table 5-4 below. Given total revenue and price, as price rises from $14 to $16, compute the price elasticity of demand using the midpoint method? Price Total Revenues Quantity Demanded $10 $100 10 $12 $108 9 $14 $112 8 $6 $112 7 1. 0.18. 2. 0.58. 2.64 points
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2 (20 points). Suppose that your demand schedule for compact discs is as follows: Price Quantity...
2 (20 points). Suppose that your demand schedule for compact discs is as follows: Price Quantity Demanded Income-$10,000) 40 Quantity Demanded (Income-$12,000) a. Use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if your income is $12,000 b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if the price is $16 3 (30 points). 9. Consider the following policies, each of...
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9. Suppose you calculate the price elasticity of demand for a certain good and you report...
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The table shows the demand schedule for a particular product. Price Quantity Demanded (Units) (Dollars per unit) 0 16 14 2 12 3 10 4 8 5 6 6 4 7 2 8 0 Refer to Table 17-3. Suppose the market for this product is served by two firms that have formed a cartel. If the marginal cost of production is $4 and each firm incurs a fixed cost of S6, the combined profit of the cartel will be $32...
Suppose that your demand schedule for compact discs is as follows: PRICE Quantity Demanded $ 8 10 12 14 16 Use the midpoint method to calculate your price elasticity of demand as the price of compact discs 40 32 24 16 increases from $8 to $10.
Just problem 13
10. Given the following demand schedule, calculate the price elasticity of demand for a price change from S40 to $35. Use the midpoint formula and show all work for full credit. (C2 points) Price () Quantity Demanded 45 40 35 30 25 20 15 10 15 30 45 60 75 90 105 120 135 0 11. Using the schedule above, calculate the elasticity of demand when price changes from S25 to $20. Again, show all of your...
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Question 2 The schedule below shows the number of packs of candy bought in a candy shop at a variety of prices. Price of candy ($/pack) 4 3 Number of packs purchased per day 300 600 900 1200 1500 (a) Determine the price elasticity of demand for candy when the price of candy increases from $2 to $3 using the midpoint method. Classify the product based on the price elasticity of demand for candy and explain the effect on the...
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