Answered: The elasticity of demand is 0.22 And…

Business

Economics

The elasticity of demand is 0.22 And the change in demand is given as 40% Calculate the change in price

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section19.1: Elasticity: Part 1

Problem 2ST: What does a price elasticity of demand of 0.39 mean?

See similar textbooks

Related questions

Q: If the price of gasoline is $2.00 and the price elasticity of demand 0.4, what is the new price if…

A: The price elasticity of DD (demand) can be defined as when the change in quantity (Q) demanded is…

Q: Suppose the price elasticity of demand for used cars is estimated to be 3. What does this mean?

A: The elasticity of demand refers to the responsiveness of quantity demanded due to a change in price.…

Q: The demand for product X is 10 000 pieces for the price of EUR 120. The price has increased to 140…

A: The demand for product X is 10,000 pieces at a price of EUR120. Q1 = 10,000 and P1 = 120 The demand…

Q: The price elasticity of demand for a product is 0.76. A percentage change in price is 13%. The…

A: The change in quantity divided by the average of the initial and final quantities divided by the…

Q: When price of a commodity falls by 50% and the quantity demanded increases by 100% find the price…

A: Elasticity of demand measures the responsiveness of change in quantity demanded to change in price.…

Q: If the price elasticity of demand of for gasoline is - 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand has the following formula ed= % change in quantity demanded / % change in…

Q: A price elasticity of demand equal to 5 means

A: The formula for elasticity is given by: ep = [dq/dp] x [p/q] If ep > 1 then elastic demand If…

Q: the price elasticity of demand for a product is -.5. When its price is increased by 2%. Quantity…

A: The price elasticity(Ep) of demand(dd) measures that if there is any variation in the prices(P) of a…

Q: The percentage change of quantity demanded is 60% and the percentage change in price is 20% find the…

A: Generally in the question The percentage change in quantity demanded given as = 60% Percentage…

Q: Price elasticity of demand of a good is (-)$1 calculate the percentage change in price that will…

A: According to question we are given that Demand of a good =(-)$1 percentage change =?

Q: Managers of movie theaters know that the price elasticity of demand for movie tickets is 1.5. If…

A: The firm wants to increase sales which means the quantity demanded for a product increases by 6%.…

Q: Calculate the price elasticity of demand for both 1908-1911 and 1912-1915. Does the product appear…

A: Elasticity of Demand The elasticity of demand is the percentage change in a quantity demanded of a…

Q: If the price elasticity of demand of for gasoline is 1.8, then a 15% decrease in quantity demanded…

A: Price elasticity of demand is the measurement of change in quantity demanded with the change in…

Q: Example ( COKE Product) of cross elasticity of demand

A: Elasticity is a mode to evaluate the change in the quantity of a commodity that will be affected by…

Q: Find the price elasticity from 2 to 1 such as: %4QD %AP

A: The elasticity of demand measures the responsiveness of quantity demanded changes as a result of…

Q: A price elasticity (ED) of -1.50 indicates that for a ____ increase in price, quantity demanded will…

A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…

Q: the endpoint method to compute the price elasticity on D1. 10 55 D, D2 80 90 100 m point A to point…

A: Use the endpoint method to compute the price elasticity on D1.

Q: The value of elasticity of demand is 0.34 and the percentage rise in quantity is 20% Calculate the…

A: We are given that:- Elasticity of demand (Ed) = 0.34 Percentage rise in quantity = 20% Thus we need…

Q: Price increases from Tk10 to 12 and the price elasticity of demand is -0.5. The quantity demanded…

A: The demand shows the willingness and ability of a person to buy goods and services. The demand curve…

Q: Calculate the value of elasticity of demand when the percentage rise In demand is 0 and the % fall…

A: # When price falls, demand rises when the good is a normal good. To what degree the demand changes,…

Q: The price elasticity of demand of a good is 0.3. The price rise by 60% Calculate the percentage…

A: # Elasticity of demand is given by the formula:- Ed = % Change taking place in quantity demanded /%…

Q: If the price of a doughnut is P15,00 quantity that would be purchased is only 6. However, if the…

A: Given information is: Initial price: P15.00 Final price: P12.50 Initial quantity demanded: 6…

Q: The price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The…

A: Given data: Price elasticity of demand is 0.51 Percent change in price is 17% Initial quantity of…

Q: If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity…

A: Initial Price, P = $1 Final Price, P1 = $2 Initial quantity, Q = 100 Final quantity, Q1 = 80

Q: The demand for a good doubles due to a 25 percent fall in its price calculate the price elasticity…

A: Price elasticity of demand is a measure of the degree of responsiveness of changes in demand caused…

Q: The regional wage board declared an across the board (nationwide) average 3.4% increase in the 2021…

A: % Increase (change) in minimum wages: 3.4% Current minimum wage earning labor force = 2.332 million…

Q: If the price elasticity of demand is 6, then a 3 percent decrease in price results in a type your…

A: The markets are the place where the buyers and the sellers of the goods and services tend to…

Q: If the price elasticity of demand is 0.5 and there is 10% increase in price it will lead to ...?

A: According to the given question Price Elasticity of demand will be the quantity demanded divided by…

Q: Suppose you did an analysis regarding the sensitivity of tea to the price of tea. You estimated the…

A: Price elasticity of demand refers to a percentage change in quantity demanded due to a percentage…

Q: Zara purchases 2500 pieces of candies regularly given her income of 5000 pesos. She preferred to buy…

A: Elasticity is a measure of the sensitivity of one variable to changes in another variable, most…

Q: The price elasticity of demand is typically expressed as a positive number because: Multiple Choice…

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: What is the price elasticity of demand given P = $4 and Qa = 1500 – P2

A: Demand equation Q = 1500 - P2 Put P = 4 => Q = 1500 - (4)2 => Q = 1500 - 16 => Q = 1484 So,…

Q: When the price of a good is $6, the quantity demanded is 50 units per month; when the price is $8,…

A: Arc price elasticity refers the change in demand due to change in price so the calculation of the…

Q: At Webs-R-Us, a website design company, the new manager has decided to increase the price of…

A: In the very question, we are given price elasticity of demand which shows the degree of change in…

Q: If the price increases by 10%, what would happen to the quantity demanded when the price elasticity…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: The price elasticity of good x is 2.06, the percentage change in price is 10.33, what is the…

A: The Price elasticity of demand is a quantitative statement of the law of demand that is the…

Q: The price elasticity of demand for a product is 0.51. A percentage change in price is 17%. The…

A: Using the midpoint method for price elasticity of demand: Price elasticity of…

Q: In details the elasticity of demand ( COKE product)

A: The Price elasticity of demand(PED) is the change in demand for a quantity(Qd in%) due to the price…

Q: The monthly supply of desktop personal computers is given by the equation QS = 15,000 + 43.75P. At a…

A: Given: Supply equation: QS = 15,000 + 43.75P Price = $800

Q: The quantity demanded was 500 units. What will it be now?

A: Price elasticity of demand is a measure which calculates the responsiveness of demand of a good when…

Q: The price elasticity of demand is 5.0 if a 10 percent increase in the price results in a;

A: Given information, Price elasticity of demand: 5.0 Change in price: 10% To find: Change in…

Q: During a recent 30-day period, the Squish restaurant sold 600 Ocean Delights at a price of $6.45.…

A: Total revenue is the multiplication of price and quantity. The price rises then the total revenue…

Q: Benny used to sell rubber boots at R125 per pair. At this price he was able to sell 50 pairs of…

A: Elasticity = (change in Q / change in P) * (P/Q)

Q: The demand for a good at 10 per unit is 40 units. Price falls by 5. If price elasticity of demand is…

A: Elasticity is an economic concept that describes how changes in any of a good's or service's…

Q: If the price elasticity of supply of a good is 0.8 and if the price rise by 20% then calculate the…

A: # The formula for elasticity of supply is GIVEN as:- = % Change in quantity supplied / % Change in…

Q: When the price of movie tickets in a certain town was increased, the movie-theaters' revenues…

A: The total revenue is maximum at the unit elastic demand which is the elasticity of 1 in absolute…

Q: The elasticity of demand for some products is affected by the personal values of potential…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: ary is a merchandiser manager of shampoo a known grocery store. Upon doing the inventory, she notice…

A: A) To find Elasticity of Demand First we find, Change in quantity demanded (in %) For this…

Q: The value elasticity of demand is -2.5 This means that the demand is highly inelastic True/False

A: We are given that the elasticity of demand is -2.5 We need to comment on the elasticity of this…

Q: Find the elasticity

A: p2 + 2p + q = 100 q = 100 - p2 - p When p = 9, q = 100 - 81 - 9 = 10 Elasticity (Ed) = (dq/dp) x…

Question

The elasticity of demand is 0.22

And the change in demand is given as 40%

Calculate the change in price

Video Video

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Conceptual knowledge

VIEW

Answer and explanation

VIEW

Trending now

This is a popular solution!

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

What does a price elasticity of demand of 0.39 mean?
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?
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.
A college raises its annual tuition from 23,000 to 24,000, and its student enrollment falls from 4,877 to 4,705. Compute the price elasticity of demand. Is demand for the college elastic or inelastic?
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?
Describe the general appearance of a demand or a supply tune with zero elasticity.
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?