Price elasticity of demand

Assignment Help Macroeconomics
Reference no: EM131098569

Solve for the price elasticity of demand for the following goods and then determine if the good is elastic or inelastic. Show your work.

a) If the price of sweaters increases by 10%, the quantity demand decreases by 13.5%.

b) The original price of yoga pants was $25.00 and 1000 pairs were sold. The price than increased to $30 and the number of pairs sold decreased to 800. Use the midpoint formula.

Reference no: EM131098569

Questions Cloud

Short-run economic fluctuations : Create a 12- to 15-slide Microsoft® PowerPoint® presentation that will be presented to the company's Executive Committee (that is, to your ECO/372 class during Workshop 4). The presentation should cover the following items:
Perform horizontal and vertical analysis on income statement : Perform a Horizontal and Vertical Analysis on the Income Statement of each company, for the years 2015 and 2014.(For example, to complete a Horizontal Analysis for 2014, 2013 data will be required).
What is your price elasticity of demand for soda : what is your price elasticity of demand for soda
Reduce the average length of stay : Health insurers are putting pressure on hospitals to reduce the average "length of stay" of their patients. A random sample of 27 hospitals in one state had a sample mean "length of stay" for men of 4.1 days and a sample standard deviation of 1.85 da..
Price elasticity of demand : Solve for the price elasticity of demand for the following goods and then determine if the good is elastic or inelastic. Show your work.
Standard deviation of the sampling distribution : Assume that the population proportion of all business professionals who select an airline based on price is 0.30. A random sample of 215 business professionals is to be used for further study. What is the shape, mean(expected value), and standard dev..
Are these two goods substitutes or complements : Are these two goods substitutes or complements?
Marginal cost equals average total cost : Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? why?
Write research paper about disclosures by business entities : Write a fifteen pages research paper about Disclosures by Business Entities about Government Assistance and here are some instructions: Double spaced, 12 pt font, 1" margins all around.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Question regarding the pay for goods and services

What is this controls how much we pay for goods and services. For example, when the iphone 6 came out, the supply was little or unknown so people were willing to pay a lot for the phone; the price was high.

  Discuss privatization in terms of the production

An ongoing policy issue is the privatization of hydro in the province of Ontario . Discuss privatization in terms of the production, transmission and retailing sectors . Specifically which sectors should be deregulated and why?

  What is the minimum price at which firms will continue

Assume that there are a large number of identical firms in a competitive industry, each with the cost function

  Explain the general formula for the sample average

Suppose we have a data set with only two observations, y1 and y2. The general formula for the sample average is: sample average=1/2(y1+y2) Suppose y1 and y2 are sampled from the population in such a way so that they are correlated with each other.

  Demand relates the various amounts that consumers are

Demand relates the various amounts that consumers are willing to buy over a specified time period

  What is the consumer price index

What is the Consumer Price Index (CPI) and How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source.

  What are the nash equilibria of the game

If Malcolm Fights, both politicians gets a payoff of 30. If Malcolm opts to Negotiate, the payoffs are 15 to Malcolm and 15 to Tony. What are the Nash equilibria of the game?

  What happens to the demand curve and the supply

Explain how the law of demand affected your purchase. Give specific examples of how the determinants of demand and supply affect this product (T-I-P-E-N and P-R-E-S-T). What happens to the demand curve and the supply curve when any of these determina..

  Income and substitution effects

After Iraq invaded Kuwait, gasoline prices increase dramatically--up to 50 percent. There were many effectrs of the increased price of gasoline.

  Discouraged workers and the economy

A discouraged worker is an individual without a job who has a desire to work; however, the worker has not actively searched for a job within the last six months, because the worker believes that there are no jobs available. Such a worker is not in..

  In what way is consumer demand different from consumer

The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400. The company can also produce 1,000 water pistols for a total cost of $3,000, but it would have costs of $200 even if it produced no water pistols.

  What would an economists say that the burden of the fica

What would an economists say that the burden of the FICA tax is shared equally. Who bears more of the tax burden Workers or employers.

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