Calculate the cross elasticity of demand

Assignment Help Microeconomics
Reference no: EM13834294

When price of coke rises from $5 to $7, quantities demanded for coke falls from 1000 to 800, and quantities demanded for pepsi rises from 300-400.  Calculate the cross elasticity of demand, using the mid-point approach.

 

 

Reference no: EM13834294

Questions Cloud

The steps that the fed can do to stimulate the economy : What are the steps that the Fed can do to stimulate the economy? What are problems with those types of policies? How do you know that they will work?
Prepare a contribution format income statement : Fill in the following table with your estimates of total cost and average cost per cup of coffee at the identical level of activity for a coffee stand. Round off the cost of a cup of coffee to the nearest tenth of a cent. Does the average cost per cu..
Determine the objects average velocity over time interval : determine the object's average velocity over the time interval
Calculate income elasticity of demand for the product : When income goes up from $20,000 to $30,000, demand for product A is going up from 300 to 400.  The price of the product A is $200.  However demand for product B is going down from 100 to 50.  The price of the of the product B is $10.  Is the Product..
Calculate the cross elasticity of demand : When price of coke rises from $5 to $7, quantities demanded for coke falls from 1000 to 800, and quantities demanded for pepsi rises from 300-400.  Calculate the cross elasticity of demand, using the mid-point approach.
Conduct a financial performance and analysis : Discuss the Company and provide a relevant background - Ratio Analysis on the Chosen Company with Interpretation considering Macro Economic and Macro Business Environment
The population of new york city : It is shown that the population of New York City, NY is much greater than that of Irvington, NJ. Employment opportunities, malls, social activities and tourist sites in New York City are therefore more than that in Irvington. If attractiveness for Ne..
What would your ideal capital structure look like : We have looked at liabilities and equity in previous weeks and we are discussing leasing this week. How does the discussion of these items relate to our capital structure? What are the components of the capital structure? What are the differences of ..
Uncertain economic times : In uncertain economic times, what serves as a way of preserving economic value that can be spent or consumed in the future?  a. obtaining a credit card b. owning gold

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the maximum annual membership fee

The only DVD rental club available to you charges $4 per movie per day. If your demand for movie rental is P=20-2Q, where P is the rental price and Q is the quantity demanded, what is the maximum annual membership fee you would be willing to pay to j..

  If diane and gary have same opportunity cost of 5 per hour

1. gary and diane must prepare a presentation. as part of their presentation they must do a series of calculations and

  How are exchange rates evaluated find the importance of

why do nations trade? what is meant by the concept of comparative advantage? could a nation be better off

  What is elasticity of demand for gillettes consumer products

Gillette's shareholders, Chairman and CEO James Kilts indicated, "Despite several new product launches, Gillette's advertising-to-sales declined dramatically . . . to 5.5 percent last year. Gillette's advertising spending, in fact, is one of the l..

  Average cost includes both fixed and variable costs

Average cost includes both fixed and variable costs

  Quantity equation of money holds

Suppose that the quantity equation of money holds M x V = P x Y and the velocity of money is constant, V. (a) If the money supply increases by 3 percent, by what percentage rate do prices change? That is, what is the inflation rate? (b) What is the r..

  What is meant by foreign aid and write goal of foreign aid

describe developing countries and how they differ from industrial market economies. how can international trade aid

  Based on many years of experience a lecturer in econ241 has

based on many years of experience a lecturer in econ241 has determined that the probability distribution function of x

  Efficiency expert hired by a manufacturing firm

You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $35, r = $100, MPL = 7, and MPK = 20 the firm:

  Labour force participation rate

Show that the unemployment rate, ur, is related to the employment rate, er and labour force participation rate, pr as follows: ur = (1 - er/pr ) Presume the labour market is in equilibrium when the labour force participation rate is 0.60 and the empl..

  Social welfare function what do you mean by a social

what do you mean by a social welfare function? if you assume that such a function exists what properties of social

  How you would leverage resources in the short term

Discuss how you would leverage two (2) resources in the short term and two (2) resources that could be used for long-term planning. Provide specific details examples to support your response.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd