An experiment is conducted that provides the data in the accompanying table. Toll rate Number of vehicles using the tollway per day $8 10,000 $6 12,000 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6? Round to the nearest hundredth. c. What is the change in total revenue when the toll is decreased from $8 to $6?
An experiment is conducted that provides the data in the accompanying table. Toll rate Number of vehicles using the tollway per day $8 10,000 $6 12,000 a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6? Round to the nearest hundredth. c. What is the change in total revenue when the toll is decreased from $8 to $6?
Chapter6: Elasticities
Section: Chapter Questions
Problem 6P: Explain why using the midpoint formula for calculating the elasticity of demand gives the same...
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An experiment is conducted that provides the data in the accompanying table.
Toll rate | Number of vehicles using the tollway per day |
---|---|
$8 | 10,000 |
$6 | 12,000 |
a. What is the absolute value of price elasticity when the toll rate decreases from $8 to $6?
Round to the nearest hundredth.
c. What is the change in total revenue when the toll is decreased from $8 to $6?
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Absolute value of price elasticity of demand ?
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