microeconomics and the market system, Microeconomics

Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon t $3.50 a gallon. Your usage of paint drops from 35 gallons to 20 gallons a month. 1. Compute the price elasticiy of demand for paint and show the calculations. 2. Decide whether the demand for paint is elastic, unitary elastic, or inelastic. 3. Explain the reasoning and intepret the results.
Posted Date: 4/1/2012 8:01:46 PM | Location : United States







Related Discussions:- microeconomics and the market system, Assignment Help, Ask Question on microeconomics and the market system, Get Answer, Expert's Help, microeconomics and the market system Discussions

Write discussion on microeconomics and the market system
Your posts are moderated
Related Questions
What are the costs and difficulties of such an operation? The direct costs are administrative, cooperative and storage costs, whereas the societal costs include misallocation,

to what extent are interest rates determined by the economic theory

Public Administration: According to L.D. White, "Public administration consists of all those operations having for their purpose the fulfillment or enforcement of public polic

Consider a person''s decision problem in trying to decide how many children to have. Although she cares about children and would like to have as many as possible, she knows that ch

Economic Reforms and Infrastructure Growth Infrastructure data for the pre-reform period (1980-81 to 1990-91) is with1980-81 as base year and for post-reform period (1993-94 t

Criticisms of World trade organisation:   There are critics too of the WTO. It is believed that the WTO will emerge out destructive of biodiversity and people's livelihoods by

Substitution Effect -  The  substitution effect is change in an item's consumption associated with the change in the price of the item, level of utility held constant. -  Wh

The following hypotheses are concerned with the general impact of FDI from Costa Rica trading partners on exports from the technology sector:  H1:   There is a positive signifi

Aggregate Demand When referred to in the circumstance of GNP or GDP, aggregate demand dealings the sum of what is spent by various parties in the United States for product and

Illustrate the content in the rational consumer? Content in the rational consumer: a. How to spend income onto goods and services? b. Why maximizing usefulness? c. Wh