Answered: + 45 units are sold at a price of $15…

+ 45 units are sold at a price of $15 and 75 units are sold at a price of $10, what is the absolute value of the price elasticity of demand? Hint: use the midpoint formula. Select the correct answer.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Related questions

Q: discuss why a firm in perfect competition will not charge a price above or below the market price.

A: The perfect competition is a form of market where there are a large number of buyer and sellers,…

Q: A. When the price =50000-500(Demand) and the variable cost-$3000 per unit, the value of demand that…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Finance charge is referred to as the cost for borrowing money, which includes interest along with…

Q: monthly demand for ice cans being manufactured by Mr. Cruz is 3k pieces. With a manually guillotine,…

A: The monthly demand for ice cans is 3000 pieces. With a manually operated guillotine, the unit…

Q: Provide a brief introduction around strategic decision making and macro -environmental analysis.

A: Strategic decision making:- To achieve an edge, strategic decision-making is a method of…

Q: 1. A firm's production function is given by q = KL² - L³ for K>0 and L>0. Suppose K is fixed at…

A: The production function is a tool that is used in the field of economics to determine how effective…

Q: can you please help with part D the last two questions, thank you.

A: Given three types of DVD players i.e Deluxe, Standard and Economy. Records for the past 5 years are…

Q: Jack Reminds Samuel that, as an early career professional, he’s only making a fraction of the…

A: Introduction Pension is the sum of money a person receives after leaving active duty. It is a fund…

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

Q: 2. Suppose your neighbor likes to host parties at their house. They value having these parties at…

A: In the field of economics, the term "utility" refers to the value or satisfaction that a consumer…

Q: 2. Costing. Using the given information, compute the following: Total Cost Item Inclusion Unit Cost…

A: Answer 6. According to the question given, Total Cost = 155.70 Yield = 217 grams The formula to…

Q: Figure 2 shows the payments and revenues of a small project. If M.R.R.R= %15, Evaluate the project…

A: Year Cash OutFlow Cash Inflow 0 20000 1 500 5000 2 1000 5000 3 1500 5000 4 2000 5000 5…

Q: B. The installation cost of a machine is $10000 with estimated life of 10 years and selvage value of…

A: Installation Cost = 10000 Salvage Value = 2000 n = 10

Q: A). List the Ten Principles of Economics (just the titles). Group them in three categories: (i). How…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Questions 1.4 and 1.5 refer to a consumer with preferences over food (x) and clothing (y)…

A: Inflation means the rise in the price level of goods and services over a period of time. The rise in…

Q: Using a sample from a population of adults, to estimate the effects of education on health, we run…

A: Given regression equation Hypertensioni= α+βeduci+γXi+εiWhere Hypertension= Y is binary…

Q: Explain how Friedman included expectations in his macroeconomic theory, as well as his theory on the…

A: Macroeconomic theory: Macroeconomics is worried about the comprehension of the total peculiarities…

Q: 2. Suppose your neighbor likes to host parties at their house. They value having these parties at…

A: The attribute or state of being useful is referred to as utility. The term "utility" refers to…

Q: Alpha Associates has the following details: Fixed cost = $20,00,000 Variable cost per unit = $ 100…

A: Following are the given values: FC = $2000000VC = $100Price = $200Quantity = 60000

Q: The cost of construction material for large infrastructure projects are reportedly rising at an…

A: General inflation rate = 6% Inflation of construction material = 12%

Q: The following is a linear trend fitted to a series expressed in thousands of dollars. T = 381.99…

A: Linear Trend equation refers to the equation that shows the relationship between two variables. The…

Q: A consumer utility function is U = 1 log x1 + log x2. His budget constraint is given by 2x1 + 4x2 =…

A: The consumer is in equilibrium when he gets maximum satisfaction out of his expenditure. The…

Q: 3. The following table gives the supply schedule for Purcell Ltd, a UK based rug producer. Price (£)…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Weekend hotel packages, vacation packages, cable tv plans and season ticket plans are examples of:…

A: The price of a thing is the amount of money that must be spent to obtain it. Price is a measure of…

Q: Discuss the reason(s) why countries need to be rank in terms of its Human Development Index.

A: Human Development Index (HDI) is a tool used to summarize the level of human development. It helps…

Q: (Kindly give the given, complete and detailed solution. Thank you) Ten years ago, you deposited…

A: Compound interest rate is the interest on loan based on both the initial principal and the…

Q: price level 15 14 13 12 11 10 7 6 5 LRAS E SRAS AD

A: Equilibrium in the economy occurs at the intersection point of aggregate demand (AD) and short-run…

Q: 2 Suppose that the current spot exchange rate is €0.8250/S and the three-month forward exchange rate…

A: Exchange rate is the rate at which domestic currency will be converting into the foreign currency…

Q: 16. Use incremental analysis to select the best alternatives using Benefit - Cost ration A B C D E F…

A: Benefit cost ratio also known as profitability index , this is a tool of project evaluation which…

Q: Q₁ Ô ATC₁ Q₂ Quantity of Output ATC₂ Q₁ ATC₂

A: Long run average cost curve is the locus of minimum points of short run average cost of different…

Q: 11. Industrial clusters sometimes break up, with production moving to countries with lower wages.…

A: Economies of Scale refer to the gain from producing bulk. When the output of the same goods…

Q: L M 20 N R A K J P R Ho- G FE Profit maximizing quantity of the monopoly: + Marginal revenue is 0 in…

A: "Monopoly is a single seller/producer of a commodity or service. A monopolist firm is a price maker…

Q: MODIFIED TRUE OR FALSE The ultimate purpose of development economics is to help us understand…

A: Development Economics:- Development economics can be explained as a discipline of economics that…

Q: you learned four steps that should be used to evaluate a regression model. What is the first step…

A: A linear technique to modelling the connection between a scalar response and one or more explanatory…

Q: The following graph shows the production possibilities curve (PPC) of an economy that produces…

A: PPC shows combinations of two outputs that can be produced with the given level of resources and…

Q: Outline the basic elements of Friedman’s (1968) Natural Rate Hypothesis. Elaborate on output…

A: Two basic elements of Friedman's natural rate hypothesis are: The natural rate of unemployment does…

Q: Give an example of a concept you think may be associated with strong macroeconomic performance.…

A: Discalmlier: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: You are the sole producer of a novel polymer that has the potential to transform a number of other…

A: Given Demand curve P=400-10Q .... (1) Where Q is in thousands of tons produced per year.…

Q: 2. Mr. Reis has these daily balances on his credit card for his last billing period. He did not pay…

A: The annual percentage rate (APR) basically refers to the annual interest gained on an amount charged…

Q: • Determine different types of Unemployment

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Blake decides to spend a spring day in the field planting wheat with some help from some workers he…

A: Total revenue of Blake = $870 Blake incurred renting cost of tractor = $50 Fertilizer cost = $150…

Q: I cannot read the hand writing can someone tyoe this out for mr please ?

A: Macroeconomics basically refers to the discipline of economics concerned with the overall structure,…

Q: Purchase down payment → $15000 -> Pay morthing. Taxes & Paint cost Utilities - 135 Rent down payment…

A: Present value mean that money amount today is much more than that same amount in future. In this…

Q: Question 2 The volatility of short-term economic growth gives rise to O the balance of payments. O…

A: When talking about volatility, it explains the fluctuations in the economic growth of an economy in…

Q: Price (dollars per pair of gloves) 25 20 15 10 5 S = MSC D=MSB 0 1 2 3 4 5 Quantity (thousands of…

A: A deadweight loss is a cost to society created by market inefficiency due to the disequilibrium of…

Q: Prices of wheat and cotton are p1 TL and p2 TL in a market. Consider that there are 30 consumers in…

A: Introduction Prices of wheat and cotton are p1 TL and p2 TL in a market. Total utility of 20…

Q: You are a newly business owner ( around 1year) and you are able to start it up by means of having…

A: I will choose option 2. I will add it to my capital as my equity. Because a business should have…

Q: Assume the following model of the economy: Y = C + I + G C = 120 + 0.5(Y - T) I = 100 - 10r G =…

A: IS curve is given by the equation: Y = C + I + G LM curve is given by the equation: MPd = MPs =MP To…

Q: Consider the following game and the direct correlation device. Show that the device is a correlated…

A: A correlated equilibrium is a more general solution notion in game theory than the well-known Nash…

Q: This is the answer plz write Clear hand written Y=5kº5 +32° Multiply k & L by X s(kjt3 CLOS 0.5 0.5…

A: As asked by the student. Written and clearly scanned this question.

Question

If 45 units are sold at a price of $15 and 75 units are sold at a
price of $10, what is the absolute value of the price elasticity of
demand? Hint: use the midpoint formula. Select the correct
answer.
A) 8
B) 1
C) 1.25
D) 1.5

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?
What does a price elasticity of demand of 0.39 mean?
The Stopdecay Company sells an electric toothbrush for $25. Its sales have averaged 8,000 units per month over the past year. Recently, its closest competitor, Decayfigh ter, reduced the price of its electric toothbrush from $35 to $30. As a result, Stopde cays sales declined by 1,500 units per month. What is the arc cross elasticity of demand between Stopdecays toothbrush and Decayfighters toothbrush? What does this indicate about the relationship between the two products? If Stopdecay knows that the arc price elasticity of demand for its toothbrush is 1.5, what price would Stopdecay have to charge to sell the same number of units as it did before the Decayfighter price cut? Assume that Decayfighter holds the price of its toothbrush constant at $30. What is Stopdecays average monthly total revenue from the sale of electric toothbrushes before and after the price change determined in part (b)? Is the result in part (c) necessarily desirable? What other factors would have to be taken into consideration?
The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for gasoline at Joe’s 66 station is -1.2. Explain what might account for the different elasticities.