Answered: You have estimated that the price of an…

You have estimated that the price of an ounce of unobtanium is P(Q)=105 – 7/10 x Q, where Q is the number of tons demanded. If the current price is $53 per ounce, what is elasticity of demand?

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...

See similar textbooks

Related questions

Q: What would be the absolute value of the elasticity if demand is inelastic? A. greater than 1 B.…

A: Elasticity of demand refers to the degree of responsive of a good or a service to change in its…

Q: Mr. Haris has the following demand equation for a certain product: Q = 30 - 2P. At a price of $7,…

A: Elasticity refers to the responsiveness of a factor to the change in other related factors. Point…

Q: A consumer buys 160 units of a goods at a price of 8 per unit. Price falls to 6 per unit. how much…

A: The initial price of goods = 8 Final price of goods = 6 Initial quantity = 160 units Elasticity of…

Q: The demand would be less elastic when the number of Substitutes are more for a good True/False

A: # The availability of more number of substitute for a good means that the good has many more other…

Q: If an increase in price Of a gel pen from 60 to 80 results to an increase in the quantity supplied…

A: The markets are the place where the buyers, and the sellers of goods, services, and other products…

Q: Assume that the peanut butter demand function is p = 2,000 0.5q, | calculate the elasticity of…

A: Answer: Given, Demand function: p=2,000-0.5qPrice=P300.00At p=300, the quantity will be as given…

Q: If worldwide annual sales of smartphones in 2014-2016 were projected to be approximately q=-3p+1,088…

A: Price elasticity of demand is given as Ed= % change in quantity demanded/% change in price =…

Q: When the elasticity of supply is 0 then this means that the supply is _____________

A: # The elasticity of supply measure the responsiveness in supply due to the change in the prices.

Q: If a manufacturer sets the price of the good at $ 10, he can sell 300 of this item in a year. If the…

A: I) Arc elasticity of demand Ed= % change in quantity demanded/% change in price =…

Q: For a change in the price of coffee from $2 per 8 oz cup to $1 per 8 oz cup, the ELASTICITY OF…

A: Price Elasticity of Supply measures the percentage change in quantity supplied due to percentage…

Q: Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while…

A: The elasticity of demand is the measurement in which change in quantity demanded due to the change…

Q: Suppose that the price of apples was originally $10 per kg, and the quantity supplied was 1,000 kg.…

A: Elasticity is a term used in economics to describe how the aggregate quantity demanded of an item or…

Q: An end of aisle price promotion changes the price elasticity of a good from -2 to -3. If the normal…

A: We will use the relationship between Price, Marginal Cost and elasticity of demand

Q: The ministry of mines has estimated that the supply curve for vibranium is P(Q.)=70+ (18/10) x Q..…

A: Elasticity of supply is given as Es= Percentage change in quantity supplied / Percentage change in…

Q: The price decreases from $2,000 to $1,800. Quantity demanded per year increases from 5000 to 6000…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…

Q: If the demand curve for slices of pizza is given as Q = 300 - 16p, then the point elasticity of…

A: Demand curve: It shows the change in demand for a good or service due to a change in its price.

Q: The Ventura Cine Club (VCC) is the only theater in the town of Ventura. Children tickets are 3…

A: Correct : c) -2.25

Q: The demand function for your product is: Q(P) = 1478-22P where P is price Assuming that P=$50…

A: The price elasticity of demand is defined as the magnitude of change in the quantity demanded for a…

Q: The demand function for a certain metal is q = 100 - 2p, where p is the price per pound and q is the…

A: The demand and supply mechanisms have their several analysis and events and allow for significant…

Q: Suppose the demand curve for tea is given by q = 40 p2, where p is the price per cup. If the price…

A: Given

Q: Suppose that the total revenue received by a company selling basketballs is $600 when the price is…

A: When the price is $30 and revenue received by a company is $600. Quantity of basketball sold by a…

Q: The demand for tickets to the Daytona 500 NASCAR event is given by the equation Qn=360'000-800P…

A: Demand function for tickets to the Daytona 500 NASCAR is Q=360000-800P ......(1) Capacity…

Q: The demand function for bicycles in Holland has been estimated to be Q = 2;000 + 15Y - 5:5P where Y…

A: a) Price elasticity of demand refers to how the quantity demanded of a good change when its price…

Q: The demand for your product demands on three factors; the price of your good, the price of a related…

A: Point elasticity is given by the formula dq/dp x p/q. We can substitute values from the given…

Q: For the given demand function D(x), and price, in dollars, x, find the elasticity at the given…

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

Q: Calculate price elasticity of demand if quantity demanded of a commodity rises from 800 units to 850…

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

Q: suppose the price of a product rises from 10 to 14 dollars and, as a result, the quantity demanded…

A: we have prices and demand as P1 = 10 and Q1 = 15 P2 = 14 and Q2 = 5

Q: The short run price elasticity for electricity consumption is -0.20. If the current price of…

A: The mid-point elasticity is the ratio of the average quantity demanded to the average price. It is…

Q: A price elasticity of -1.5 means that we expect (approximately) the percentage change in quantity…

A: Elasticity is defined as the responsiveness or sensitiveness on the demand if the factor influencing…

Q: If the price elasticity of demand for a product is equal to 0.5 then a decrease in price of 10…

A: The price elasticity of demand is the ratio of the percentage change in quantity demanded to the…

Q: A firm supplies 500 units of a good at a price of ? 5 per unit. The price elasticity of supply of a…

A: Price elasticity of supply measures the responsiveness to the supply of a good or service after a…

Q: The price of cigars is $10, with a quantity demanded of 1,000 per day. If the price increases to…

A: Price elasticity of demand = % change in the quantity demanded/ % change in the price

Q: Billy Bob's Barber Shop knows that a 5 percent increase in the price of their haircuts results in a…

Q: You've estimated the market demand curve for the tea market as P=111 - 4Q. What is elasticity of…

A: P = 111-4Q Rewriting the equation, in terms of Q, we get 4Q = 111-P Q = 111/4 - (1/4)*P Now, at P…

Q: company increases the price of its product from $ 210 to $ 240 per unit and keeps 30,500 units of…

A: The price is increased from $210 to $240. The stock the company keeps every month remains at 30,500…

Q: Suppose that an increase in the price of melons from $1.30 to $1.80 per pound increases the quantity…

A: Price elasticity of supply, Es= [(Q2 -Q1)/(Q2 + Q1) /2]÷(P2 - P1) /P2 + P1)/2

Q: George has been selling 5,500 T-shirts per month for $9.50. When he increased the price to $10.50,…

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

Q: If the elasticity of demand for a commodity is estimated to be 1.5, then a decrease in price from OR…

A: Price elasticity of demand is a measurement of the change in the consumption of a product in…

Q: If a demand curve is VERTICAL, then own-price elasticity of demand for this good is equal to:

A: Elasticity of demand depicts how much consumer responds with the change in price.

Q: Suppose that the price of product X rises by 12 percent and the quantity supplied of X increases by…

A: The formula: Elasticity of supply =% change in quantity% change in price

Q: Would you consider your demand for gas to be relatively elastic or inelastic? What changes do you…

A: Price elasticity measures the responsiveness of demand to changes in price. Elastic demand is…

Q: XYZ Co. makes a processor that requires a metal that can only be found in a single mine in Peru. Do…

A: Answer:

Q: If the demand for American automobiles is more elastic in Europe than it is in the United States, we…

A: The price elasticity of demand of a good is a measure of how price affects the quantity demanded.…

Question

Stuck on this question for hours. Not sure on the solution.

Question in image.

Thanks for your help :)

You have estimated that the price of an ounce of unobtanium is P(Q)=105 – 7/10 × Q,
where Q is the number of tons demanded. If the current price is $53 per ounce, what
is elasticity of demand?
Round to two decimal places. If you answer is 1.275, enter 1.28. For some elasticities,
we take absolute value, for others, we do not. All prices are quoted in Gazzalestan
dollars.
Correct Answer
1.02 margin of error +/- 0.01

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

Step 1

VIEW

Step 2

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

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?
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
If automobiles and gasoline are complements, then their cross-elasticity coefficient is a. strictly greater than 1. b. positive. c. equal to zero. d. negative.
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?
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?
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?