If another phone service provider enters the market and forces Connecting U to drop the price of a gigabyte down even further than $16- let's say they drop it by an additional 22.2%- what will probably happen to your quantity demanded of data? a) my quantity demanded will increase, but by less than 40%b) my quantity demanded will increase by more than 40%c) my quantity demanded will decrease by more than 40% Note- Connecting U first dropped their price from $20 to $16 causing the price for a gigabyte of data to drop by 22.2% and a 40% increase in quantity demanded. case?Midpoint FormulaCurious CallyMidPoint FormulaMidpoint Formula for Percentage Change in Quantity:There are two close substitutes in the market: gigabytesof data from Connecting U and Mega Bytes.((New Quantity – Old Quantity) / ((New Quantity + Old Quantity) /2)) x100Midpoint Formula for Percentage Change in Price:((New Price – Old Price) / ((New Price + Old Price) /2)) x100Jamming JoeThat is correct! The more substitutes in the market, the moreelastic the demand for a good, all else equal.Econ MentorAnother phone service provider is trying to enter the market in Joe's area.Joe, if another phone service provider enters the market andforces Connecting U to drop the price of a gigabyte down evenfurther than $16 -- let's say they drop it by an additional 22.2% -what will probably happen to your quantity demanded of data?Curious CallyMy quantity demanded will increase, but by less than 40 percent.My quantity demanded will increase by more than 40 percent.My quantity demanded will decrease by more than 40 percent.

Price elasticity of demand refers to the change in quantity demanded of a good in response to change…

Answered: If another phone service provider…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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If another phone service provider enters the market and forces Connecting U to drop the price of a gigabyte down even further than $16- let's say they drop it by an additional 22.2%- what will probably happen to your quantity demanded of data?

a) my quantity demanded will increase, but by less than 40%

b) my quantity demanded will increase by more than 40%

c) my quantity demanded will decrease by more than 40%

Note- Connecting U first dropped their price from $20 to $16 causing the price for a gigabyte of data to drop by 22.2% and a 40% increase in quantity demanded.

case?
Midpoint Formula
Curious Cally
MidPoint Formula
Midpoint Formula for Percentage Change in Quantity:
There are two close substitutes in the market: gigabytes
of data from Connecting U and Mega Bytes.
((New Quantity – Old Quantity) / ((New Quantity + Old Quantity) /2)) x100
Midpoint Formula for Percentage Change in Price:
((New Price – Old Price) / ((New Price + Old Price) /2)) x100
Jamming Joe
That is correct! The more substitutes in the market, the more
elastic the demand for a good, all else equal.
Econ Mentor
Another phone service provider is trying to enter the market in Joe's area.
Joe, if another phone service provider enters the market and
forces Connecting U to drop the price of a gigabyte down even
further than $16 -- let's say they drop it by an additional 22.2% -
what will probably happen to your quantity demanded of data?
Curious Cally
My quantity demanded will increase, but by less than 40 percent.
My quantity demanded will increase by more than 40 percent.
My quantity demanded will decrease by more than 40 percent.

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