What is price elasticity of demand for this banks accounts

Assignment Help Business Economics
Reference no: EM131086039

Suppose a local bank increases the fees they charge for their bank accounts by 5 percent. In response, the demand for their bank accounts decreases from 35,000 to 5,000. What is price elasticity of demand for this bank's accounts?

Using the midpoint formula, the price elasticity of demand is _________. (Enter your response rounded to two decimal places.)

Reference no: EM131086039

Questions Cloud

Non-polluting soap or environmentally friendly food products : We’ve all heard the cliché that “nice guys finish last.” Is this true in marketing? Do firms that use good ethical practices have an advantage or disadvantage? Do you think consumers will pay a few cents more for non-polluting soap or environmentally..
Case of oligopoly-other types of markets : Please consider the case of oligopoly. Are there actually such firms in the U.S. economy? What is their relative importance compared to other types of markets? (Absolutely no need to do research on the Internet; some casual observations will be adequ..
Leases its output introduce the nondurable product : Assume that demand for services per period is Pt = 1000 − Qt where Qt is the stock of the durable consumed. Let the discount factor for both consumers and the firm be one. For what values of c would a monopolist that leases its output introduce the n..
Find profit-maximizing prices-outputs for durable goods : Assume that demand for services per period is Pt = 1000 − Qt where Qt is the stock of the durable consumed. Let the discount factor for consumers and the firm be given by δ. Find the profit-maximizing prices and outputs for a durable goods monopolist..
What is price elasticity of demand for this banks accounts : Suppose a local bank increases the fees they charge for their bank accounts by 5 percent. In response, the demand for their bank accounts decreases from 35,000 to 5,000. What is price elasticity of demand for this bank's accounts?
Write an equation proposals - construct appropriate graphs : Write an equation proposals - Construct appropriate graphs - Supply function given by equation QS = 3P - 50.
Provide a description about the target population : Analyze how social, cultural, and behavior factors in the target population contribute to the health issue; and identify what factors/characteristics are positive or negative and which behaviors/practices/beliefs serve as risk factors or protectiv..
Explain demand-pull inflation : MGE1108 ECONOMICS FOR BUSINESS - After you have completed the table above, use the information to draw/plot the Average Fixed Cost (AFC), Average Variable Cost (AVC), Average Cost (AC) and the Marginal Cost
Determine the tube surface temperature at the coil inlet : For the prescribed heat dissipation, what is the required condensation rate (kg/s) and water flow rate (kg/s)?

Reviews

Write a Review

Business Economics Questions & Answers

  Price elasticity of demand for labor over range of prices

A firm has the production function Q=L times K. For this production function, MPL=K and MPK=L. The firm initially faces input prices w= $1 and r= $1 and is required to produce Q bar= 100 units. Later the price of labor, w, goes up to $4. Find the opt..

  What is the nash equilibrium and equilibrii

Create your own games. You will need to set it up one normal form for a one-shot simaltaneous game and one shot sequential move game. These should be seperate games - not the same parameters for both. What is each players dominent strategy? What is t..

  Elucidate tahoe produces and consumes of cattle

In autarky, Jackson produces and consumes 30 units of cattle and 80 units of wheat, while Tahoe produces and consumes 80 units of cattle and 60 units of wheat. Based on this information.

  Under an adjustable pegged exchange rate system

If the official exchange rate of the British pound sterling were changed from $2.80 to $2.40 under an adjustable pegged exchange rate system, the pound sterling would be

  What are the capitals and labours shares of income

Consider the following production function. Y=K^5 (AN)^.5 , where both the population and the pool of labor are growing by rate n=.07, the capital stock is deprecciating at a rate of d= .03, and A is normalized to 1. What is the form of this producti..

  Broader costs of environmental injuries resulting

If a coal power plant considers the costs of labor and materials, as well as the broader costs of environmental injuries resulting from its power production processes then Its?

  Triangle of producer surplus

Under monopoly, still with the price PW which is again label triangle of consumer surplus and the triangle of producer surplus.

  What impact would have on elasticity of demand for employees

If county government offices required that all employees must live within the county limits, what impact would this have on the elasticity of demand for employees of the county government offices?

  Analyzing arguments

How can they be important to an argument? What are some of the problems one faces when they are trying to determine authorial intent? Is the author always right about what they intended? Might an argument have a meaning that the author did not intend..

  Explain the long run average cost curve

Explain the impact the law of diminishing marginal returns has on both marginal cost and average total cost - with the aid of a diagram explain the long run average cost curve and the influences upon it.

  Qfor each of the following values for the mpc determine the

q.for each of the following values for the mpc determine the size of the simple spending multiplier and the total

  Find the unemployment rate in the economy

Suppose that the matching function is given by: M = em(Q, A) = eQ^(0.7)A^(0.3) Express pc and pf as functions of e and labor market tightness j. Suppose that z = 1, b = 0.4, e = 0.9 and k = 0.24. Suppose that w = 0.75 Find the unemployment rate in th..

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