The demand curve , Macroeconomics

A sporting goods store has estimated the demand curve for a popular brand of running shoes as a function of price. Use the diagram to answer the questions that follow.

2358_price per unit.png

a.   Calculate demand elasticity using the midpoint formula between points A and B, between points C and D, and between points E and F.

b.   If the store currently charges a price of $50, then increases that price to $60, what happens to total revenue from shoe sales (calculate P × Q before and after the price change)? Repeat the exercise for initial prices being decreased to $40 and $20, respectively.

c.   Explain why the answers to a. can be used to predict the answers to b.

 

Posted Date: 2/22/2013 7:43:54 AM | Location : United States







Related Discussions:- The demand curve , Assignment Help, Ask Question on The demand curve , Get Answer, Expert's Help, The demand curve Discussions

Write discussion on The demand curve
Your posts are moderated
Related Questions
How can an economy achieve mutual gain from International Trade?

Draw the supply and demand graph for pizza, then answer the questions below. SUPPLY OF AND DEMAND FOR PIZZA Quantity Supplied Price Quantity Demanded 300 $15.00 100 240 12.00 180 1

how can a country maintain equilibrium GDP with foreign trade?


I am in a college econ class that I may possibly fail. anyone able to explain how to find this answer? Assume that the following data characterize the hypothetical economy of Tran

You have been invited by world leaders to be part of a team of international economists selected to make recommendations on how the international community might work together more

A person chooses between leisure and consumption. All of their consumption comes from current income. The utility derived from any combination of leisure and consumption is given b

7 people have jobs, 3 want to work but are not, and there are 20 adults. What is the participation rate?

Now we will analyse how macroeconomic variables fit together and present models which explain the main macroeconomic variables.  Using these models we can, for instance, analyse

what are the causes of inflationary gap