menu
bartleby
search
close search
Hit Return to see all results

The data below represent a demand schedule.QuantityDemandedProduct Price$6C543341506a. In the diagram below, draw a demand curveInstructions: Use the tool provided Demand to graphically show demand. This line should only contain the twoendpointsDemand ScheduleToolsDemand57Quantity demandedb. Use the midpoint formula for Eqto determine price elasticity of demand for each of the four possible $1 pricechangesInstructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute valuesMoving from $5 to$4, EdMoving from $4 toS3, EdMoving from $3 toS2, EdMoving from $2 to$1, Edc. What can you conclude about the relationship between the slope of the demand curve above and its elasticity?The demand curve has a constant slope of-1and elasticity decreasesas we movedown the curve.eaud onpod

Question

i just want part B done, not the rest of it. 

The data below represent a demand schedule.
Quantity
Demanded
Product Price
$6
C
5
4
3
3
4
1
5
0
6
a. In the diagram below, draw a demand curve
Instructions: Use the tool provided Demand to graphically show demand. This line should only contain the two
endpoints
Demand Schedule
Tools
Demand
5
7
Quantity demanded
b. Use the midpoint formula for Eqto determine price elasticity of demand for each of the four possible $1 price
changes
Instructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute values
Moving from $5 to
$4, Ed
Moving from $4 to
S3, Ed
Moving from $3 to
S2, Ed
Moving from $2 to
$1, Ed
c. What can you conclude about the relationship between the slope of the demand curve above and its elasticity?
The demand curve has a constant slope of-1
and elasticity decreases
as we move
down the curve.
e
aud onpod
help_outline

Image Transcriptionclose

The data below represent a demand schedule. Quantity Demanded Product Price $6 C 5 4 3 3 4 1 5 0 6 a. In the diagram below, draw a demand curve Instructions: Use the tool provided Demand to graphically show demand. This line should only contain the two endpoints Demand Schedule Tools Demand 5 7 Quantity demanded b. Use the midpoint formula for Eqto determine price elasticity of demand for each of the four possible $1 price changes Instructions: Round your answers to 2 decimal places. Enter your answers as positive values (absolute values Moving from $5 to $4, Ed Moving from $4 to S3, Ed Moving from $3 to S2, Ed Moving from $2 to $1, Ed c. What can you conclude about the relationship between the slope of the demand curve above and its elasticity? The demand curve has a constant slope of-1 and elasticity decreases as we move down the curve. e aud onpod

fullscreen
check_circleAnswer
Step 1

 The mid-point formula for Price elasticity of demand:

Q2-Q1
Price elasticity of demand (e,) =~Q1+Q2)/2_
P2-P1
(P1+P2)/2
help_outline

Image Transcriptionclose

Q2-Q1 Price elasticity of demand (e,) =~Q1+Q2)/2_ P2-P1 (P1+P2)/2

fullscreen
Step 2

Moving from P1=$5 to P2=$4, Q1=1 and Q2=2

Ignoring the negative sign, when (ep) >1, its an elastic demand.

2-1
Price elasticity of demand (e,) = /2 =6.00 (approximately)
4-5
(4+5)/2
help_outline

Image Transcriptionclose

2-1 Price elasticity of demand (e,) = /2 =6.00 (approximately) 4-5 (4+5)/2

fullscreen
Step 3

Moving from P1=$4 to P2=$3, Q1=2 and Q2=3

Ignoring the negative si...

3-2
Price elasticity of demand (e,) = */ =1.40 (approximately)
3-4
(3+4)/2
help_outline

Image Transcriptionclose

3-2 Price elasticity of demand (e,) = */ =1.40 (approximately) 3-4 (3+4)/2

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Economics

Measurements of elasticity

Related Economics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its        ...

A: Part 1) When price of good X decreases by 5% , consumption of good X will increase by 15%

question_answer

Q: An economist estimated that the cost function of a single-product firm is:                          ...

A: Marginal Cost: It refers to the additional cost incurred when one more unit of a good is produced.

question_answer

Q: In this market, the equilibrium price is _____   per box, and the equilibrium quantity of oranges is...

A: Click to see the answer

question_answer

Q: 1. Inventory is: Group of answer choices a. the total amount of goods that a company produces now, r...

A: 1. Inventory is a stock or store of goods. Every company store goods as inventory which will keep fo...

question_answer

Q: I need help with questions 6 through 10. I do not understand how to read the graph based on the ques...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: A nation can  produce at a point outside its  PPF?

A: No, a nation cannot produce at a point outside its PPF

question_answer

Q: Susan can brew 5 gallons of root beer in an hour or she can make 4 pizzas in an hour. Becky can brew...

A: Absolute advantage can be defined as the ability to produce more of a given quantity with same resou...

question_answer

Q: How is a lack of income is the root cause of most social problems?

A: Income:Income refers to the money which an individual or business gets in return for giving work. Ge...

question_answer

Q: 1. A factual claim about how the world actually works   a. is a positive statement.   b. cannot be p...

A: Hey, Thank you for the question. According to our policy we can only answer upto 3 MCQs per session....

Sorry about that. What wasn’t helpful?