The chart below shows how annual electricity for an average Ontario household would vary withthe price paid for electricity. Calculate the arc elasticity of demand for electricity for thisaverage houschold. Also, in the final column, calculate the total revenue from sales of clectricityto this household.PriceQuantity DemandedKwh/yearTotal Revenue$/kwhElasticity of Demand$0.251200-0.36$0.201300$0.151400$0.101500$0.051600Hint: The own price elasticity of demand is the percentage change in the quantity demandeddivided by the percentage change in the price.What factors do you think influence the elasticity of demand for this household?

The price elasticity of demand measures the percentage by which the quantity demanded of a good or…

The chart below shows how annual electricity for an average Ontario household would vary with the price paid for electricity. Calculate the arc elasticity of demand for clectricity for this average houschold. Also, in the final column, calculate the total revenue from sales of clectricity to this household. Quantity Demanded Kwh/year Price Total Revenue $/kwh Elasticity of Demand $0.25 1200 -0.36 $0.20 1300 $0.15 1400 $0.10 1500 $0.05 1600 Hint: The own price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. What factors do you think influence the elasticity of demand for this household?

The chart below shows how annual electricity for an average Ontario household would vary with the price paid for electricity. Calculate the arc elasticity of demand for clectricity for this average houschold. Also, in the final column, calculate the total revenue from sales of clectricity to this household. Quantity Demanded Kwh/year Price Total Revenue $/kwh Elasticity of Demand $0.25 1200 -0.36 $0.20 1300 $0.15 1400 $0.10 1500 $0.05 1600 Hint: The own price elasticity of demand is the percentage change in the quantity demanded divided by the percentage change in the price. What factors do you think influence the elasticity of demand for this household?

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 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...

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