If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded...
If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decrease from 900,000 bottles to 845,000 bottles, what is the price elasticity of demand for suntan lotion?
Homework Answers
Price elasticity of demand = % change in quantity demanded/%change in price
% change in quantity demanded = ((845000-900000)/900000)*100 = -6.11%
% change in price = ((8-6)/6)*100 = 33.33%
So, PED = -6.11/33.33 = 0.18
Hence the price elasticity of demand for suntan lotion is 0.18, means the demand is inelastic for price changes.
Add Answer to:
If the price of suntan lotion increases from $6 to $8 per bottle
and quantity demanded...
Suppose 50 bottles of beer are demanded at a price of $1 per bottle. Reducing the...
Suppose 50 bottles of beer are demanded at a price of $1 per bottle. Reducing the price at happy hour to $0.20 per bottle increases the quantity demanded to 70 bottles. 1. What is the price elasticity of demand (using the mid-point formula discussed in class)? 2. Is the demand elastic, inelastic, or unit elastic? 3. What happens to the total revenue of the firm if they lower their price from $1 to $0.20.
When the price of Gatorade is $2 per bottle, the quantity demanded is 500 bottles per...
When the price of Gatorade is $2 per bottle, the quantity demanded is 500 bottles per at the local grocer. When the price falls to $1 per bottle, the quantity demanded increases to 1000. Given this information, the demand for Gatorade is A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic.
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...
When the price increases from $4 to $6 and the quantity demanded decreases by 2 units...
When the price increases from $4 to $6 and the quantity demanded decreases by 2 units from 10 to 8, the price elasticity of demand is a)-25 b)-1.5 c)-0.56 d)-2.5 e)cannot be determined from the information given
1) If the quantity demanded of one good increases from 200 to 300 when the price...
1) If the quantity demanded of one good increases from 200 to 300 when the price of another good increases from $5 to $7, what is the Cross-Price Elasticity of Demand? a: -.4 b: 1.21 c: -1.21 D: .33 2) If the quantity demanded decreases from 480 to 460 when the price increases from $2 to $2.10, the price elasticity of demand in absolute value is: A: .88, B: 4.3 C: 1.14 D: 1.49 Based on your answer above, 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...
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...
Quantity Demanded (Income=$10,000) Quantity Demanded (Income-$12,000) a. Use the midpoint method to calculate your price elasticity...
Quantity Demanded (Income=$10,000) 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 which is aimed at reducing violent crime by reducing the use of guns. Illustrate each of...
The price of burgers decreases from $5 to $3, and the quantity demanded increases from 9...
The price of burgers decreases from $5 to $3, and the quantity demanded increases from 9 to 11. What is the price elasticity of demand using the mid point method?
The price for product A increases from $20 to $23. The quantity demanded for product B...
The price for product A increases from $20 to $23. The quantity demanded for product B decreases from 1800 units to 1620 units. While quantity demanded for product C increases from 3000 units to 3300 units, calculate the cross elasticity between each of these products and product A. Explain the likely relationship between each of these two products (B and C) and product A based on whether the cross elasticity of demand is positive or negative with respect to product...
Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X
6. Assume that a 4 percent increase in income in the economy produces an 8 percent increase in the quantity demanded of good X. The coefficient of income elasticity of demand is a. - 0.5 and therefore X is an inferior good. b. +2.0 and therefore X is an inferior good. c. +0.5 and therefore X is a normal good d. +2.0 and therefore X is a normal good 7. Suppose the price elasticity of demand for Reece's peanut butter cups is 1.5 and the...
Suppose 50 bottles of beer are demanded at a price of $1 per bottle. Reducing the price at happy hour to $0.20 per bottle increases the quantity demanded to 70 bottles. 1. What is the price elasticity of demand (using the mid-point formula discussed in class)? 2. Is the demand elastic, inelastic, or unit elastic? 3. What happens to the total revenue of the firm if they lower their price from $1 to $0.20.
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...
Quantity Demanded (Income=$10,000) 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 $16 3 (30 points). 9. Consider the following policies, each of which is aimed at reducing violent crime by reducing the use of guns. Illustrate each of...
Most questions answered within 3 hours.
-
could someone please post clear drawings of the three structures
in the equilibrium mixture of D-glucose...
asked 2 minutes ago -
Using the Properties of Order show that 5n5 +
4n4 + 6n3 + 2n2+ n +...
asked 5 minutes ago -
What is experiential learning and how is it helpful for teaching
leadership, and interpreting group dynamics?...
asked 5 minutes ago -
A security awareness policy defines the responsibilities of
managers and information owners.
True
False
asked 6 minutes ago -
which is the equilibrium expression for the reaction
3A(g)+4B(g)<---> 2C(g)+5D(g)
asked 7 minutes ago -
Create a balanced compensation plan that you feel would
encourage a restaurant manager to be more...
asked 14 minutes ago -
Re: Human Physiology
Comment on the differences between representing V02 max as an
absolute number and...
asked 17 minutes ago -
A firm with a WACC of 10% is considering the following mutually
exclusive projects:
0
1...
asked 22 minutes ago -
. A 100.0 mL sample of 0.18 M HClO4 is titrated with 0.27 M
LiOH. Determine...
asked 45 minutes ago -
A regression equation that describes the relationship between
the amount of the bill ($) at a...
asked 1 hour ago -
exercise on VSEPR and molecular structrue.
octahedral
SeCl62-
TeCl62-
ClF62-
distorted
SeF62–
IF6–
asked 2 hours ago -
284 mL of a 0.52 M potassium hydroxide solution is added to 467
mL of a...
asked 2 hours ago