1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kay [80]
3 years ago
7

The price of notebooks is $5, and at that price consumers demand 12 notebooks. If the price rises to $7, consumers will decrease

quantity demanded to 4 notebooks. Using the midpoint formula, what is the price elasticity of demand for notebooks?
Business
1 answer:
Vitek1552 [10]3 years ago
7 0

Answer:

3

Explanation:

We are asked to use the midpoint formula.

Here, instead of dividing the change in values by the old value as in the normal elasticity calculation, we use the average of the two.

Mathematically:

Price elasticity of demand according to midpoint formula is :

{Q2 - Q1 / (Q2 + Q1) ÷ 2] × 100%} ÷ {[P2 - P1/ (P2 + P1) ÷ 2] × 100}

Price changed from 5 to 7. The midpoint of 5 and 7 is the average = (5+7)/2 = 6

% change in price in this case is (7-5)/6 * 100 = 100/3 = 33.33%

% change in quantity:

We first find the average = (12+4)/2 = 16/2 = 8

% change = (4-12)/8 * 100 = -100%

The elasticity of demand is thus -100/33.33 = 3

You might be interested in
Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The
Lady_Fox [76]
I think is the answer c
5 0
4 years ago
A point on the production possibilities curve represents a combination of goods that is
Elodia [21]

Answer:

The correct answer is:  feasible and efficient.

Explanation:

The production possibility curve or frontier shows the different bundles or combinations of two goods that be produced using the given resources and state of technology.  

All the points on the production possibilities curve represent the combinations that are feasible and efficient.

The points below the curve show the points that are feasible but inefficient.

The points above the curve show the points that cannot be attained using the given level or resources and technology.

6 0
3 years ago
When you choose to buy a good or service you make your decision in​ ____________ while the people who produce the good or servic
fiasKO [112]

Answer:

your self-interest; their self interest

Explanation:

When you make a decision to buy a good, you make your choice in your self-interest. There could be different reasons to make such choices. This could be because the good could form part of your basic needs or because the prices are quite low.

When people make a decision to produce the good that you are buying, these people are making their decision in their own self-interest. This could also be to make money.

7 0
3 years ago
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each
yawa3891 [41]

Answer:

(A) $110,000

(B) $44,000

(C) $440,000

(D) $176,000

Explanation:

Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock

Sub corporation pays out 40% of net income of dividend each year

(A) Parent's Co's share of Sub's Co's net income for the year is $110,000

(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000

(C) The total net income can be calculated as follows

= 110,000 ×100/25

= 11,000,000/25

= $440,000

(D) The total dividend for the year can be calculated as follows

= 440,000 ×40/100

= 440,000 × 0.4

= $176,000

5 0
3 years ago
Why don't many developing countries benefit from the spread of free trade?
Annette [7]
My best guess is A because they maintain high tariffs on the agriculture custom many developing countries export.
3 0
3 years ago
Read 2 more answers
Other questions:
  • You just heard that a​ well-known manufacturer in a different industry segment is going to enter your market with a product that
    5·1 answer
  • If there is a substantial increase in bad debts, what might this mean?
    10·1 answer
  • Sam is comparing the costs of two loans. The principal amount of each loan is $5,000. One is due in one year and the other is du
    7·2 answers
  • The daily demand of an item is 1600 units. The average processing time is 30 seconds per unit. Containers (carrying 240 items) o
    14·1 answer
  • Recently, Curtis Gibson had an interview for the position of a senior manager at a transit service. At the interview, the interv
    10·1 answer
  • 13. A relationship cane damaged by trust — honest expectations people spending time with one another
    14·1 answer
  • Data Recovery Systems (DRS) has a degree of operating leverage (DOL) equal to 3.2x and a degree of total leverage (DTL) equal to
    9·1 answer
  • 18. In the current year, Marc, a single taxpayer, has ordinary income of $35,000. In addition, he has $3,000 in short-term capit
    6·1 answer
  • Point Company uses the standard costing method. The company's product normally takes 0.25 hour to produce. Normal annual capacit
    7·1 answer
  • You will not hurt your credit rating if you:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!