Answer number 3 with full solution Compute thefollowing word problems andidentify what type of elasticity isPED of theeach.Show youranswersusing bothformula and midpoint formula.point elasticity1. Last month, at P14 perkilowatthour(KWH),аhousehold used to consume380 KWH. However, price ofelectricity has risen to P20 perKWHthatresultedtodecreased consumption of 340KWH.2. A fruit vendor used to sell400 oranges at P12 each. Dueto inadequate supply, the priceincreased to P16 that led toselling 200 oranges.3. Using the point elasticformula, find the value of Q1 ifQ2=10, P1=30, P2=40, andPED=1.5

Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Answered: 3. Using the point elastic formula,…

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3. Using the point elastic formula, find the value of Q1 if Q2=10, P1=30, P2=40, and PED=1.5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 31CTQ: Economists define normal goods as having a positive income elasticity. We can divide normal goods...

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Question

Answer number 3 with full solution

Compute the
following word problems and
identify what type of elasticity is
PED of the
each.
Show your
answers
using both
formula and midpoint formula.
point elasticity
1. Last month, at P14 per
kilowatt
hour
(KWH),
а
household used to consume
380 KWH. However, price of
electricity has risen to P20 per
KWH
that
resulted
to
decreased consumption of 340
KWH.
2. A fruit vendor used to sell
400 oranges at P12 each. Due
to inadequate supply, the price
increased to P16 that led to
selling 200 oranges.
3. Using the point elastic
formula, find the value of Q1 if
Q2=10, P1=30, P2=40, and
PED=1.5

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