What is the price elasticity of demand

Assignment Help Business Economics
Reference no: EM13999684

Suppose you own a bookstore where you currently sell 25 John Grisham mystery novels per day at a price of $38 per day. However, if you were to reduce the price to $27, then you would d sell 31 John Grisham mystery novels per day. Using the midpoint formula, what is the price elasticity of demand for john Grisham mystery novels?

Reference no: EM13999684

Questions Cloud

Price elasticity of demand for tea using midpoint formula : The initial price of a cup of tea is $1, and at that price, 400 cups are demanded. If the price falls to $0.90, the quantity demanded will increase to 500. Calculate price elasticity of demand for tea using the midpoint formula. Calculate the (point)..
What type of violation has joe engaged in : Joe agreed with Auto Insurance Co. not to use his auto for commercial business purposes when he purchased auto insurance. Joe had an accident while delivering pizzas for Bigger Pizza Inc. What type of violation has Joe engaged in?
Full-time job with a considerably higher salary : While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerably higher salary, you stopped purchasing hot dogs. Explain this behavior? Peter’s Pizzeria sells both pizzas and wings. It wants to i..
Demand is better than the one the consultant prepared : An associate made the following statement: “My regression model of demand is better than the one the consultant prepared for us because it has a higher R2. Besides, my equation has three more independent variables and so is more complete.” Comment on..
What is the price elasticity of demand : Suppose you own a bookstore where you currently sell 25 John Grisham mystery novels per day at a price of $38 per day. However, if you were to reduce the price to $27, then you would d sell 31 John Grisham mystery novels per day. Using the midpoint f..
How many speedometers must the company sell to break even : The Automotive Supply Company has a small plant that produces speedometers exclusively. Its annual fixed costs are $30,000, and its variable costs are $10/unit. It can sell a speedometer for $25. How many speedometers must the company sell to break e..
What is the price elasticity of supply : Suppose that, when the average price of shoes increases by 5%, the quantity supplied of shoes increases by 8%. What is the price elasticity of supply? Is the supply of shoes elastic or inelastic?
Differences of marshallian-hicksian-slutsky demand curves : Explain the differences of Marshallian, Hicksian, Slutsky demand curves. You can explain verbally or you can use the graphs. Suppose that the price of good 2 increases from the initial prices. Explain Slutsky substitution effect and Hicksian substitu..
Supply curve for radiographs by a radiology practice : Given the supply curve for radiographs by a radiology practice, predict how this curve will shift (supply will increase or decrease), if the following occurs which of them will cause a decrease. An increase in the wages of radiological technicians

Reviews

Write a Review

Business Economics Questions & Answers

  Optimum output combination lies on this isocost curve

The Hassman Company produces two joint products, X and Y. The isocost curve corresponding to a total cost of $500,000 is Qy = 1,000 – 10Qx – 5Qx^2. What is the optimum output of product Y? Can you be sure that the optimum output combination lies on t..

  One firm in an industry significantly

Under oligopoly if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

  What will be the value of the lost revenue

what will be the value of the lost revenue after a 3-year period at an interest rate of 11.940397% per year, compounded continuously?

  Public debt and the government budget deficit

A paragraph or so, explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.

  The greatest impact on the exchange rate

What is the probable effect of each of the following on the exchange rate of a country, other things being equal? More domestic oil is discovered and developed. Which two of these do you think would have the greatest impact on the exchange rate?

  What is the next best alternative method

In data smoothing, sometimes one can use the simple exponential smoothing method. What are the main disadvantages of this method? Then, what is the next best alternative method? Why? Explain.

  Assignmentnbspa television station is considering the sale

assignmentnbspa television station is considering the sale of promotional dvds. it can have the dvds produced by one of

  What was rate of inflation for goods and services produced

Suppose nominal GDP rose from 6250 billion in 1995 to 6630 billion in 1996. If the GDP deflator rose from 125 to 130 during this time, what was the percent growth in real GDP? Given the data in part (a), what was the rate of inflation for goods and s..

  Identify success factors in mergers and acquisitions

Explain and discuss financing options for financing mergers and acquisitions. Identify success factors in mergers and acquisitions

  Government intervene in the economy

Why does the government intervene in the economy? Should they and what would the impact be if they did not?

  Connection between customer satisfaction-customer loyalty

What does the latest research say about the connection between customer satisfaction and customer loyalty? Do an Internet search of this topic and find specific statistics.

  Large domestic market

Entering international markets has become a priority for many companies even in the US, which has a large domestic market? Is having a strategic alliance with foreign companies a better alternative to simply appointing distributors and dealers abroad..

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