Suppose that the price of a good changes from 10 dollars to 20 dollars while the quantity demanded changes from 200 units to 125 units. Therefore, the arc price elasticity of demand is: OA -0375 OB -0692 OC 0012 OD -1200
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Q: The formula to calculate elasticity using the arc method is given below:…
A: The formula to calculate elasticity using the arc method: E = (Q2-Q1)/(Q2+Q1)(P2-P1)/(P2+P1) so we…
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- If the price elasticity of demnd for milk is -0.80, a 16% increase in sales implies a reduction price by ......?A company imports a product from China with a cost of $50 per unit. The product is imported with an import tariff of 20% and it is sold for $100 per unit. The total sale revenues for the company were 85.000. If the government increases the import tariff per unit of the product to 30% and the elasticity of demand is 3 find the following: (i) (ii) How many units of this product the company will sale if the price rise the same amount with the import tariff Calculate if the revenues of the company will increase or decrease with the increase of import tariffthe demand function for a commodity is Q-500-5P. find out point arc elasticity for fall in price from rs 25 to rs 20.
- Filll in the values in the equation to calculate the PED for the Malabar coffee Price Elasticity of Demand (PED)= abs( % / % )=A AWB Company is interested in obtaining quick estimates of the supply and demand curves for coal. The firm's research department informs you that the elasticity of supply is approximately 1.7, the elasticity of demand is approximately -0.85, and the current price and quantity are $41 and 1,206, respectively. Price is measured in dollars per ton, quantity the number of tons per week. Estimate linear supply and demand curves at the current price and quantity. Illustrate both curves on a diagram. What impact would a 10% increase in demand have on the equilibrium price and quantity? Illustrate this impact on similar diagram in part (i) If the government refused to the price increase when demand increased in (ii) above,how much shortage is created?. Mark the shortage on the diagram in part (ii)The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105eP - 3p/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥300. E = 24 Interpret your answer. The demand is going down v by 24 % per 1% increase in price at that price level. Thus, a large price decrease v is advised. (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) yen (c) Approximately how many paint-by-number sets willI be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month
- The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 97e° -3p²/2, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥ 400. E = X Interpret your answer. The demand is going down ✔✔✔ by X% per 1% increase in price at that price level. Thus, large price decrease ✓ (b) At what price will revenue be a maximum? (Round your answer to the nearest integer.) X yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month is advised.Qd= 25000-2p Qs= 10000-1p Calculate the market equlibrium level of price and quantity for housing unit? Calculate price elasticity of demand using point elasticity method when industry is in equlibrium and interpret the result?The estimated monthly sales of Mona Lisa paint-by-number sets is given by the formula q = 105e3p- + P, where q is the demand in monthly sales and p is the retail price in hundreds of yen. (a) Determine the price elasticity of demand E when the retail price is set at ¥700. E = Interpret your answer. The demand is going down v is advised. by % per 1% increase in price at that price level. Thus, a large price decrease (b) At what price will revenue be a maximum? hundred yen (c) Approximately how many paint-by-number sets will be sold per month at the price in part (b)? (Round your answer to the nearest integer.) paint-by-number sets per month
- -0.06 The short-term demand for crude oil in Country A in 2008 can be approximated by q = f(p) = 1,952,082p where P represents the price of crude oil in dollars per barrel and q represents the per capita consumption of crude oil. Calculate and interpret the elasticity of demand when the price is $62 per barrel. The elasticity of demand for oil is (Type an integer or a decimal.)You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.26, and since then the absolute PED of Masks declined by 30% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - Insert one word answer (increase/decrease/unchanged) (b) The market price of the mask in July was Tk15 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk26 per unit and the quantity of masks sold in August is 9 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August. Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25