Calculate the price elasticity of demand

Assignment Help Econometrics
Reference no: EM131131693

The demand function for a good is Q = 200 - 10P where Q is the quantity and P is the price. Calculate the price elasticity of demand at prices of $5, $10, and $15 (i.e., as the price changes from $5 to $10 and as it changes from $10 to $15) to show how it changes as you move along this linear demand curve. Is the demand for this item price elastic, price inelastic or unit elastic and what does this mean to be price elastic or price inelastic.

Reference no: EM131131693

Questions Cloud

What happens to the firms optimal level of output : See the above figure which illustrates a perfectly competitive firm. What happens to the firm's optimal level of output if the price it receives for its product increases from P2 to P3?
Dealing with fact that certain aspects of any management : Dealing with the fact that certain aspects of any management situation are more important than others is called:
Researching the fair labor standards act : For this assignment, you will be researching the Fair Labor Standards Act (FLSA). For the first section of your paper: Assess the main features of the Fair Labor Standards Act (FLSA). Compare the definitions of exempt and nonexempt employees. Evaluat..
How you would select a performance appraisal form : How you would select a performance appraisal form. An example of the instrument or form you have selected, showing the rating or ranking scale. What plan you would use to communicate to your employees. How you would train your managers or evaluators ..
Calculate the price elasticity of demand : The demand function for a good is Q = 200 - 10P where Q is the quantity and P is the price. Calculate the price elasticity of demand at prices of $5, $10, and $15
Research recruiting and retention strategies : Research recruiting and retention strategies at three different companies. What distinguishes one company from another in this area? Are strategies such as signing bonuses, tuition reimbursement, and business casual dress codes standard for the new t..
Journal entry to record the adoption of the annual budget : What are the key differences between a governmental unit and a commercial company and Discuss the terms and how they are used during the budget process of a governmental unit
What is the value of the earth''s magnetic field : If an average voltage of 0.170 V is thereby induced in the coil, what is the value of the Earth's magnetic field at that location? BEarth = 1 µT
After examining various methods used in career development : After examining the various methods used in career development, why is it important to integrate career development programs with other programs in organizations (i.e., performance appraisal, training, selection, and compensation)? Offer some suggest..

Reviews

Write a Review

Econometrics Questions & Answers

  How much additional interest will you receive

Bank North advertises, "We pay 6.5%, compounded daily." Bank South advertises, "We pay 6.5%, compounded continuously." If you deposit $10,000 with Bank South for one year, how much additional interest will you receive

  How many units would be consumed domestically

Suppose that in the domestic market for computer chips the demand is Pd = 110 Qd . The domestic supply is Ps = 10 + Qs . Foreign suppliers would be willing to supply any number of chips at a price of 30$.

  What must have been the rate of inflation

If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by what percentage would your real income (approximately) increase If your nominal income rose by 2.8 percent and your real income rose by 1.1 percent..

  Determine what is the present worth of the operation

If you invest $499,000 and you have an annual expense of $45,000 in year one which increases by $9,900 each year there after. Annual revenues are $199,000 each year. What is the Present Worth of the operation, and the Annual Equivalen

  What should be the price of the nike shoes in windsor

Please enter your answer in canadian dollars to two decimal places. So your calculations show you an answer of 135.246 then you should enter "135.25".

  What are their implications for society

How would you evaluate these two contrasting views, and what are their implications for society?

  Calculate the nominal and the effective rate of return

A 10-year, 12%, $1000 bond that pays dividends quarterly can be purchased for $900. If the bond is purchased and pays as scheduled, calculate the nominal and the effective rate of return that the purchaser receives.

  What standard would the court use to determine sale of car

Andrea, however, claims they do have a contract and wants to enforce said contract for the price of the car. What standard would the court use to determine whether there is a contract between the parties for the sale of the car.

  What is the default risk premium on corporate bonds

Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate.

  Calculate the change in welfare compared to the free market

If the government imposed a minimum wage of w=70, what would be the resulting quantity of labor employed, the wage, and the welfare loss. Also, calculate the change in welfare compared to the free market outcome (i.e., in the absence of minimum w..

  Why you would have definitely chosen the camry

You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for $25,000, at a special sale price of $20,000.

  How much cement does each firm produce

CEMEX and Holcim are two cement manufacturers in Durham. They produce cement and sell it into a competitive world market at the fixed price of $60 per ton. Producing one ton of cement also produces one ton of air pollution that negatively impacts ..

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