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Effectus [21]
3 years ago
7

Consider the market for a breakfast cereal. The​ cereal's price is initially ​$3.003.00 and 7070 thousand boxes are demanded per

week. The company that produces the cereal is considering raising the price to ​$3.503.50. At that​ price, consumers would demand 6565 thousand boxes of cereal per week. What is the price elasticity of demandLOADING... between these prices using the midpoint formulaLOADING...​? The price elasticity of demand using the midpoint formula is . ​(Enter your response as a real number rounded to two decimal​ places.)
Business
1 answer:
Rufina [12.5K]3 years ago
5 0

Answer:

Price elasticity of demand=0.48

Explanation:

The price elasticity of demand is defined as the change in demand for a particular good or service due to a change in price. The price elasticity of demand can be expressed using the mid-point formula below;

price elasticity of demand using the midpoint formula=[(Q2-Q1)/{(Q2+Q1)/2}]/(P2-P1)/{(P2+P1)/2}

where;

Q1=initial demand

Q2=final demand

P1=initial price

P2=final price

In our case;

Q1=7,070

Q2=6,565

P1=$3.003.00

P2=$3.503.30

replacing;

[(6565-7070)/{(6565+7070)/2}]/(3.503.50-3.003/{(3.503.50+3.003)/2}

(-505/6817.5)/(0.5005/3.25325)

0.074074/0.153846=-0.48141

Price elasticity of demand=0.48

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When​ Judy's income increased from ​$200 to ​$240 a​ week, she increased her demand for concert tickets by 20 percent and decrea
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Answer:

The answer is YED for concert tickets =  20%/ 20% = 1

YED for bus rides = -20% / 20%  = -1

Explanation:

income elasticity of demand (YED) = % change in Quantity demanded / % change in income

% change in income= (240-200) / 200  * 100= 20%

YED for concert tickets =  20%/ 20% = 1

YED for bus rides = -20% / 20%  = -1

The income elasticity of demand for concert tickets and bus rides is  unitary which means the rise in income is proportionate to the increase in the quantity demanded.

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2 years ago
The unemployment rate is usually calculated as the number of unemployed individuals A)divided by the total number of people in a
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C.

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3 years ago
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Shelby purchased 100 shares of ABCD Growth fund for $10.00 per share. She had income dividends of $15, capital gain distribution
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Answer:

Percentage of total return on Investment = <em>ROI = 17%  </em>

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Let’s

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Wages are said to be flexible when they respond to changes in supply and demand and lead to the market clearing wage being set. It implies that the wage will be set by the Marginal Revenue Product of labour and marginal cost of labour. Any change in supply and demand for labour will lead to a change in the wage rate.

The importance of wage flexibility arises from the fact that, in most macroeconomic models, we find an inverse relationship between wages and employment.

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3 years ago
The Federal Reserve (or Fed) often executes its policy by selling or buying U.S. government securities in the open market, which
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