1. When the price of coffee changed from $4.50 to $5.55, the quantity demanded changed from 185 to 150. Using the midpoint method, the price elasticity of demand is: A) B) 0.03. 6.95. 1. D) 20.03.
1. When the price of coffee changed from $4.50 to $5.55, the quantity demanded changed from 185 to 150. Using the midpoint method, the price elasticity of demand is: A) B) 0.03. 6.95. 1. D) 20.03.
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 4.9P: (Other Elasticity Measures) Complete each of the following sentences: a. The income elasticity of...
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1. When the price of coffee changed from $4.50 to $5.55, the quantity demanded changed from 185 to 150. Using the
midpoint method, the price elasticity of demand is:
A)
B)
0.03.
6.95.
1.
D)
20.03.
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Answer
Coffee is INELASTIC ELASTIC UNITARY ELASTIC (circle one)
_2. A poultry rancher discovered that when she increased the price of organic eggs from $0.75 to $1.00 per dozen, the sales of
her eggs fell from 300 dozen per week to 200 dozen per week. Her price elasticity of demand (using the midpoint method)
would be:
A)
B)
C)
D)
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2.60.
1.40.
0.75.
2.40.
Formula
Calculation
Answer
Eggs are INELASTIC ELASTIC UNITARY ELASTIC (circle one)
3. Ceteris paribus, if the price of a good decreases from $32 to $24, and the quantity demanded of the good increases from 80
to 100, then the price elasticity of demand (using the midpoint method) for that good is:
A)
B)
0.22.
0.29.
0.78.
D)
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1.20.
Formula
Calculation
Answer
This good is INELASTIC ELASTIC UNITARY ELASTIC (circle one)
Transcribed Image Text:4. As the price of bananas fell from $0.60 to $0.40 per pound, the quantity demanded rose from 300 pounds of bananas
bought to 500 pounds. The price elasticity of demand (using the midpoint method) is:
A)
B)
C)
D)
0.80.
1.00.
1.25.
1.50.
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This good is INELASTIC ELASTIC UNITARY ELASTIC (circle one)
_5. If the price falls from $3 to $2, and the quantity demanded rises from 200 to 400 units, compute the price elasticity of
demand using the midpoint method.
A)
B)
2.00
1.67
0.67
D)
0.60
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Answer
This good is INELASTIC ELASTIC UNITARY ELASTIC (circle one)
_6. A product's price changes from $2 to $6 and its quantity demanded changes from 10 to 4 units. This is an example of price:
inelastic demand.
B)
elastic demand.
unitarily elastic demand.
inelastic supply.
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