Calculate the change in the quantity of rye demanded

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The following table gives data on the price of rye and the number of bushels of rye sold in 2013 and 2014.

Year

Price (Dollars per bushel)

Quantity (Bushels)

2013

$3.00

8,000,000

2014

$2.00

11,000,000


a. Calculate the change in the quantity of rye demanded divided by the change in the price of rye. Measure the quantity of rye demanded in bushels. The change in the quantity of rye demanded divided by the change in the price of rye in bushels is___. (Enter your response as an integer. Include a minus sign if necessary.)

b. Calculate the change in the quantity of rye demanded divided by the change in the price of rye, but this time measure the quantity of rye demanded in millions of bushels. The change in the quantity of rye demanded divided by the change in the price of rye in millions of bushels is__. (Enter your response as an integer. Include a minus sign if necessary.)

Compared to part a, the answer to part b is in absolute terms (i.e., ignore the sign of these values).

c. Finally, assuming that the demand curve for rye did not shift between 2013 and 2014, use the information in the table to calculate the price elasticity of demand for rye. Using the midpoint formula, the price elasticity of demand for rye is___. (Enter your response rounded to two decimal places-do not forget to include the minus sign.)

 

Reference no: EM13835934

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