### Calculate total revenue before and after the price change

Assignment Help Econometrics
##### Reference no: EM13224933

While responding to each part, make sure that you show the formula prior to your complete calculation. Listing only the final answer will not earn credit.

Part I. Using the midpoint method, calculate and interpret the price elasticity of demand for the following situation:

When the price of oranges increases from \$1.00 per pound to \$1.50 per pound, quantity demanded falls from 500 pounds to 400 pounds. Calculate the price elasticity of demand.
Is the demand for oranges price elastic, inelastic, or unit elastic? Explain.
Calculate total revenue before and after the price change. How does that relate to the elasticity interpretation?

Part II. Given the following information, calculate the income elasticity of demand using the midpoint formula.

Nancy's income increases from \$20,000 to \$30,000 and her consumption of spaghetti changes from 10 pounds per month to 2 pounds per month. Calculate the income elasticity of demand.

Part III. Given the following information, calculate the cross-price elasticity of demand.

The quantity of Pepsi purchased rises by 15% when the price of Coca-Cola rises by 30%. Calculate the cross-price elasticity.

#### What rate of return will sharon receive as a result

One aspect of obtaining a college education is the prospect of improved future earnings in comparison to non-college graduates. Sharon Shay estimates that a college educatio

#### Determine the equivalent equal payment series

Determine the equivalent equal payment series for the following gradient series. A payment of \$12,000 at the end of the first year is decreasing by \$500 each year over the n

#### Determine the mass of the deposited material

Assuming that the flexural rigidity of the beam remains unchanged, determine the mass of the deposited material as a fraction of the initial mass of the cantilever beam.

#### Determine the optimal solution and the reduced costs

One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is \$60, while the profit per unit on the Deluxe model is \$

#### What is the price that the monopolist will charge

Consider a monopoly where the market demand is given by P = 170-2.5Q. The monopoly is facing the following costs: MC = 20, and TC = 20Q + 1,250. a) What is the marginal reve

#### What rate of return would investment produce for purchaser

A mine is for sale for \$240,000. It is believed the mine will produce a profit of \$65000 the first year, but the profit will decline \$5000 a year after that, eventually reac

#### How much maximum person would pay to buy insurance

when I was talking about insurance, when I ask about the maximum this person would pay to buy insurance I said that it would be the risk premium: \$4823.1 - Then I derived th

David Ding advertises on a local radio station. For the pastsix weeks, the manager has kept records of the number of minutes ofadvertising that were purchased, and the sales