Calculate the price elasticity of demand

Assignment Help Business Economics
Reference no: EM131244393

Suppose Dell reduces its computer prices by 10 percent and notices that the quantity demanded increases by 8 percent. Calculate the price elasticity of demand.

Reference no: EM131244393

Questions Cloud

Calculate their average total costs : A winery producers on bulk and economies of scale. Suppose a typical producer has fixed costs equal to $20 million and marginal costs equal to $1 per liter. Calculate their average total costs at Q=100,000; Q=500,000 and Q=1,000,000.
Demand relatively inelastic for medical care and gasoline : Why is the demand relatively inelastic for medical care and gasoline but relatively elastic for movies and automobiles?
Combining what we learned from the quantity theory : Combining what we learned from the quantity theory with what we learned about the fisher effect, we expect to see that, when a nation's M2 growth rate increased by 5%:
Assume the market price of wheat increases : Assume the market price of wheat increases by 5 percent causing farmers to increase wheat production by 5 percent. Calculate the price elasticity of supply. Using the formula for price elasticity of demand or supply, answer the following question:
Calculate the price elasticity of demand : Suppose Dell reduces its computer prices by 10 percent and notices that the quantity demanded increases by 8 percent. Calculate the price elasticity of demand.
The income elasticity of computers is positive : You hear that during the last recession in the early 1990s consumer incomes fell by 10% and the purchase of computers fell by 17%. From this you determine that: since the income elasticity of computers is positive, computers are a normal good
In nation with no inflation : In a nation with no inflation, the central bank raises the money supply by 6%, and each dollar is spent 1% more than it was before. From this we know:
Single supply and demand diagram representing one firm : Graph out this situation using a single supply and demand diagram representing one firm. Label the initial equilibrium price and quantity (P 1 , Q 1 ); Then demand increases, creating an excess demand. The firm can either respond by increasing price ..
Describe the economic principles that company executives : Describe the economic principles that company executives should consider when developing a strategy or strategies that will maximize profits while minimizing incentives for competitors to develop competing products.

Reviews

Write a Review

Business Economics Questions & Answers

  Qan entrepreneur wants to undertake a project which

q.an entrepreneur wants to undertake a project which generates future revenue of 34 or 9 and requires an initial cost

  Solve for equilibrium output and equilibrium interest rate

This says that consumers hold 20% (c = 0.2) of their money as currency and the required reserve ratio is 37.5% (θ = 0.375). Demand for central bank money (Hd) is the total amount of currency being demanded plus the total demand for reserves. Solve fo..

  Short-run impact on the firms production

Illustrate what do you think would be the short-run impact on the firm's production.

  Develop a global? mindset

Which of the following methods will NOT help managers develop a global? mindset?

  Calculate the price elasticity of demand for each group

The makers of academic books find that when they raise the price of the average book from $60 to $95, quantity demanded among students drops from 100 to 85. Among casual readers, quantity demanded drops from 80 to 35. Calculate the price elasticity o..

  Arrange purchase call a foreign exchange broker

When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably call a foreign bank and arrange a purchase. call the central bank and arrange a purchase. call another bank customer with foreign excha..

  Define each of the two types of interference

Explain what type of labour market interference is most often experienced by men and which type is most often experienced by women. Make sure you define each of the two types of interference.

  Cause a shift of the demand curve for donuts

Which of the following would cause a movement along the demand curve that is a change in the quantity demanded of donuts. Which of the following would cause a shift of the demand curve for donuts? Check all that apply

  What is happening to the US trade balance

EXPLAIN IF POSSIBLE. What is happening to the US trade balance in each of the following situations? Explain.

  By what percentage will the demand for coffee increase

By what percentage will the demand for coffee increase each year? Show how you got the solution. How soon will the area have enough demand to support a fifth Starbuck? Show how you got the solution.

  Workers in industrial countries earn much higher wages

Workers in industrial countries earn much higher wages than workers in developing countries because

  Difference between absolute advantage-comparative advantage

Explain the difference between absolute advantage and comparative advantage. Why is international trade theory based on the latter? Be sure to contrast trade theory with the earlier Mercantilist period. What was the shortcoming in Ricardo’s early tra..

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