4.2) If the price of a gardenburger increases from RM6 to RM8, the price elasticity of demand equals __- 1.75____ and demand is ________. 4.4) If the price of a gardenburger decreases from RM9 to RM8, the price elasticity of demand equals ____-3.40____ and demand is ________ 4.5) If the price of a gardenburger decreases from RM8 to RM7, the price elasticity of demand equals _-2.14_______ and demand is ________.

4.2) If the price of a gardenburger increases from RM6 to RM8, the price elasticity of demand equals - 1.75 and demand is . 4.4) If the price of a gardenburger decreases from RM9 to RM8, the price elasticity of demand equals -3.40 and demand is __ 4.5) If the price of a gardenburger decreases from RM8 to RM7, the price elasticity of demand equals _-2.14_ and demand is __.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 7SQP: Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less...

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Similar questions

Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
Prove that price elasticity of demand is not the same as the slope of a demand curve.
If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?
Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less popcorn. What does this tell you about the price elasticity of demand? What will happen to total revenue as a result of the price increase?
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
4.1) If the price of a gardenburger increases from RM8 to RM10, the price elasticity of demand equals __-_4.50_____ and demand is ________. 4.2) If the price of a gardenburger increases from RM6 to RM8, the price elasticity of demand equals __- 1.75____ and demand is _______. 4.3) If the price of a gardenburger decreases from RM7 to RM6, the price elasticity of demand equals _____-1.44___, and the decrease results in a(n) _______ in total revenue. 4.4) If the price of a gardenburger decreases from RM9 to RM8, the price elasticity of demand equals ____-3.40____ and demand is ________. 4.5) If the price of a gardenburger decreases from RM8 to RM7, the price elasticity of demand equals _-2.14_______ and demand is ________. 4.6) If the price of a gardenburger increases from RM7 to RM9, the price elasticity of demand equals __-2.67______ and the increase results in a(n) ________ in total revenue.