Calculation for a price increase

Assignment Help Business Economics
Reference no: EM13215027

Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both a price increase and a price decrease.

Calculation for a price increase

Calculation for a price decrease

 

Reference no: EM13215027

Questions Cloud

Determine transactions occur during the month of july : At the beginning of July, CD City has a balance in inventory of $2,925. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,860, terms 3/10, n/30. July 4 Pay freight charges related t..
How effective is wal-mart''s website : "How effective is Wal-Mart's website in making it each to purchase goods? Elaborate on this. They are moving into service areas such as Hip to Site services: is this a good marketing tool & why? Is this a good retailing strategy for Wal-Mart?
Determine the average expected real growth rate : Cisco doing work that he was capable of performing. The idea was to try him out at various positions to see what worked for John and worked for Cisco. Obviously his pay would be reduced, but Cisco management was willing to commit to paying him a s..
Temperature and salinity of seawater affect density : Describe how changes in the temperature and salinity of seawater affect density. Describe the mechanisms that create surface currents, deep-ocean (thermohaline) currents, upwellings, tides, and seiche.
Calculation for a price increase : Suppose that two price-quantity demanded combinations for some product are ($1.20, 90 units) and ($0.80, 110 units). Using the mid points variation of the arc own price elasticity of demand formula, calculate the coefficient of elasticity for both..
Types of sediments found in the world ocean : Identify and describe four types of sediments found in the World Ocean. Describe the source(s) and relative distribution of these sediments throughout the World Ocean basins.
Classify the demand as elastic : The own price elasticity of demand for gasoline is estimated to be 0.6.
Calculate pension expense prior service nd cost amortization : Prepare a pension worksheet for 2014 IN EXCEL. Include in the worksheet the calculation of pension expense, prior service cost amortization, actual/expected/unexpected return, contributions and benefit payments Prepare the journal entry to record ..
Determine the percentage change in price required : Determine the percentage change in price required to increase the quantity demanded of public transportation by 12%.

Reviews

Write a Review

Business Economics Questions & Answers

  Describe briefly one trade topic identified by the wto

Describe briefly one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.

  Decide whether the city government is likely to intervene

Assume this is the primary venue for sports games. Decide whether the city government is likely to intervene to enforce antitrust law or not.

  Policymakers should have a detailed knowledge

Policymakers should have a detailed knowledge and profound understanding of all theoretical models and should design economic policy based on that knowledge.

  Determine its level of profit

Determine its level of profit. (b) Suppose that a fixed costs increase to $75. Verify that this change in fixed costs does not affect the firm's optimal output.

  Encouraging foreign carmakers

Do you think it is a good idea for the Russian government to take the measure of encouraging foreign carmakers to build factories in Russia.

  Marginal cost of abatement is for the firm

Assume that after the exchange of one permit, the marginal cost of abatement is for the firm that sold the permit for $170 also the marginal cost of the firm

  Why market demand curve for pretzels slopes downward

Suppose there are 30 identical hot pretzel stands operating in New York City. Each stand has usual U-shaped average-total-cost curve. Market demand curve for pretzels slopes downward and market for pretzels is in long-run competitive equilibrium.

  Nation whose interest rate is rising more rapidly

A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.

  Explain how does the price elasticity of demand for corn oil

Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil

  What do you think will cause market fluctuations

What do you think will cause market fluctuations over the next few years as the economy struggles to recover? What areas of the economy should be closely watched as indicators of future activity?

  Merger that raises the hhi

Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.

  Explain how each of the following will affect the average

Explain how each of the following will affect the average fixed cost, average variable cost, average total cost, and marginal cost curves faced by a steel manufacturer.

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