The price for cable in your neighborhood has risen from $24 to $30 per month, and...
The price for cable in your neighborhood has risen from $24 to $30 per month, and the quantity demanded decreases from 204,000 to 196,000 subscribers.
a. Calculate the percentage change in the price of cable.
b. Calculate the percentage change in the quantity demanded by subscribers.
c. Based on these calculations, is the demand for cable elastic or inelastic?
d. What is the change in revenue for the cable service providers?
e. Now explain why the concept of price elasticity of demand is useful.
Homework Answers
Price elasticity of demand which tells that whether the demand is elastic or inelastic is calculated by the ratio of percentage in the quantity demanded to the percentage change in the price demand
A demand is said to be elastic when even there is a small change in the price but it will cause heavy change in the quantity demanded
So a shopkeepes can easily know that whether its product is price sensitive or not and set its accordingly.
For example water water is an inelastic demand
because its demand will never decrease even there is a very high change in the price
Add Answer to:
The price for cable in your
neighborhood has risen from $24 to $30 per month, and...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Naturally Good Organics Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result...
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...
Figure: The Demand Curve Figure: The Demand Curve Price 3104 Quantity Use Figure: The Demand Curve....
Figure: The Demand Curve Figure: The Demand Curve Price 3104 Quantity Use Figure: The Demand Curve. By the midpoint method, the price elasticity of demand between $6 and $7 is approximately 1.86. 0.19. 1.00 5.40. If the absolute value of the price elasticity of demand is greater than 1: percentage changes in the price will lead to equal percentage changes in the quantity demanded. small percentage changes in the price will lead to much larger percentage changes in the quantity...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect...
Price Elasticity of Demand: AWAKE Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result in changes...
In a local market, the monthly price of Internet access service decreases from $40 to $30,...
In a local market, the monthly price of Internet access service decreases from $40 to $30, and the total quantity of monthly accounts across all Internet access providers increases from 120,000 to 220,000. What is the value price elasticity of demand, expressed as a positive number? Is this demand inelastic or elastic ?
25) What is measured by the price elasticity of supply? A) The price elasticity of supply...
25) What is measured by the price elasticity of supply? A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E)...
Could someone take note for me from this paragraph with explantation. Thank you in advance CUPTERS...
Could someone take note for me from this paragraph with
explantation. Thank you in advance
CUPTERS Demand laddes 81 Price Elasticity Values The calculated value of all price elasticities for downward signe demand Elastic demand s neative number, given the inverse relationship between price and quas The per change in demanded by comment y demanded. Ir price increases, quantity demanded decreases and vice versa than the percentage change in Therefore, it is easier to drop the negative son and examine...
Price Elasticity of Demand: Chippers Cookie Bakery Price Elasticity of Demand measurers how changed in a...
Price Elasticity of Demand: Chippers Cookie Bakery Price Elasticity of Demand measurers how changed in a price affect the quantity of the product demanded. Specifically, it is the ratio of the percentage change in quantity demanded to the percentage change in price. In order to understand how to plan a successful pricing program, marketers must understand how elastic or inelastic the consumers are to changes in price. In other words, to what extent will a price increase or decrease result...
Which of the following statements about the price elasticity of demand is correct?
Question 5 Which of the following statements about the price elasticity of demand is correct? The absolute value of the elasticity of demand ranges from zero to one. The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. Demand is more elastic the smaller the percentage of the consumer's budget the item takes up. Demand is more elastic in the long run than it is in the short run. Question 6 The cross-price elasticity...
the first image is an explanation of a very similar problem i didnt do it correctly...
the first image is an explanation of a very similar problem i
didnt do it correctly so i got another attempt please
help..
Points: 1/1 Explanation: When the Big Winner charges $200, it can fill 300 rooms at that price Total revenue is equal to price times quantity. Therefore, you can compute Big Winner's revenue at this price in the following way: Close Explanation Total Revenue-Price x Quantity $200 per room per night x 300 rooms $60,000 per night By...
Figure: The Demand Curve Figure: The Demand Curve Price 3104 Quantity Use Figure: The Demand Curve. By the midpoint method, the price elasticity of demand between $6 and $7 is approximately 1.86. 0.19. 1.00 5.40. If the absolute value of the price elasticity of demand is greater than 1: percentage changes in the price will lead to equal percentage changes in the quantity demanded. small percentage changes in the price will lead to much larger percentage changes in the quantity...
Could someone take note for me from this paragraph with
explantation. Thank you in advance
CUPTERS Demand laddes 81 Price Elasticity Values The calculated value of all price elasticities for downward signe demand Elastic demand s neative number, given the inverse relationship between price and quas The per change in demanded by comment y demanded. Ir price increases, quantity demanded decreases and vice versa than the percentage change in Therefore, it is easier to drop the negative son and examine...
the first image is an explanation of a very similar problem i
didnt do it correctly so i got another attempt please
help..
Points: 1/1 Explanation: When the Big Winner charges $200, it can fill 300 rooms at that price Total revenue is equal to price times quantity. Therefore, you can compute Big Winner's revenue at this price in the following way: Close Explanation Total Revenue-Price x Quantity $200 per room per night x 300 rooms $60,000 per night By...
Most questions answered within 3 hours.
-
Why do organizations decline? What steps can top
management take to halt, decline, and restore organizational...
asked 32 minutes ago -
. Suppose a discrete random variable has probability
distribution
P(x) = .2 if x = 0...
asked 18 minutes ago -
Under the influence of its drive force, a snowmobile is moving
at a constant velocity along...
asked 46 minutes ago -
What mechanisms Drive speciation??
(I.e. what was Dawins theory on the orgin of species, and how...
asked 2 hours ago -
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 3 hours ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 4 hours ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 5 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 6 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 6 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 6 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 6 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 7 hours ago