ecause of a typhoon in the city, the price of cabbages rose from P60.00 to P80.00, and the quantity demanded falls from 150 kilos to 100 kilos. a. Compute for the price elasticity for this price range.  b. What is the interpretation of this price elasticity of demand?  c. What happens to the total revenue of sellers when the price of cabbages increases?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 2CQQ: The price of a good rises from 8 to 12, and the quantity demanded falls from 110 to 90 units....
icon
Related questions
Question

Because of a typhoon in the city, the price of cabbages rose from P60.00 to P80.00, and the quantity
demanded falls from 150 kilos to 100 kilos.
a. Compute for the price elasticity for this price range. 
b. What is the interpretation of this price elasticity of demand
c. What happens to the total revenue of sellers when the price of cabbages increases? 

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning