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
pantera1 [17]
4 years ago
9

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 unit

s, then, according to the midpoint formula, the value of price elasticity of demand (ignoring absolute value) is___________.
Business
1 answer:
Ksenya-84 [330]4 years ago
7 0

Answer:

-0.33

Explanation:

The calculation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 80 units - 100 units

= -20 units

And, the average of quantity demanded would be

= (80 units + 100 units) ÷ 2

= 90 units

Change in price is

= P2 - P1

= $2 - $1

= 1

And, the average of the price is

= ($2 + $1) ÷ 2

= 1.5

So, after solving this, the price elasticity of demand is -0.33

You might be interested in
Joe's Juice Shop operates in a monopolistically competitive market. Joe's is currently producing where its average total cost is
mars1129 [50]

Answer:

decrease and average total cost to increase

Explanation:

Based on the information provided within the question it can be said that in this scenario we would expect Joe's output to decrease and average total cost to increase. This is mainly due to the fact that Joe's Juice Shop is in a monopolistically competitive market meaning that one company controls and dominates the entire market which will ultimately put Joe's Juice Shop out of business.

7 0
3 years ago
Read 2 more answers
1 2 3 4 5 6 7 8 9 10
Anna007 [38]
Budget resolutions is the answer
3 0
3 years ago
Natalle's parents keep pushing her to find a job, but she has not had much luck. She spends her time searching the Internet for
gizmo_the_mogwai [7]

Answer:

C

Explanation:

So what we can infer is that Natalle is really lazy when looking for a job. Now, we can also infer that her friends and her parents push her to get a job, but she will not go, which is why she rarely goes to interviews for one. When she does, however, just as mentioned here, she showed up half an hour late. So, I am not saying that she should blame her friends for herself being late, but out  of all of the choices, this seems the most logical for the following reasons:

A- Her Friends Have Jobs (Wrong)

B- Person-blame happens ALL of the time, not rarely. (Wrong)

C- The only logical answer (still not ok to blame people) (Correct)

D-There is plenty of info. (Wrong)

7 0
3 years ago
If the supply curve for housing is perfectly inelastic, then a reduction in demand will cause the equilibrium price to: A. rise
inna [77]

Answer: D. fall and the equilibrium quantity to stay the same.

Explanation: Price elasticity of supply is simply the responsiveness of change in quantity supplied to a change in price of a particular commodity or service. Elasticity of supply is of different types. We have inelastic supply, elastic supply, perfectly inelastic and perfectly elastic.

Perfectly inelastic supply means the supply curve is vertical. There is not going to be any change in quantity supplied despite change in demand but only the price moves. So, if there is a reduction in demand, the equilibrium price will definitely fall while the quantity supplied remains the same.

4 0
3 years ago
Which of the following would be considered the highest risk portfolio? AA portfolio made up of 20% savings accounts, 50% mutual
Vlad [161]

Answer

C. A portfolio made up of 60% stocks, 30% mutual funds and 10% Treasury bonds.

Explanation

In this option, the investment is more than 50% for  the money placed in stocks and the prices for stock keep on fluctuating on daily basis. This is a highly risky investment though investments in stock can give a good return. To safeguard the amounts that were saved, a person has to avoid putting more investments on stock.


7 0
4 years ago
Read 2 more answers
Other questions:
  • Tayler Company reported the following data.
    10·1 answer
  • Personal Finance<br> What is a motive?
    13·1 answer
  • A disadvantage associated with obtaining goods and services externally includes:
    13·1 answer
  • When people engage in activities that help others, their brain releases endorphins, the brain’s natural opiates, which induce in
    5·1 answer
  • Neumann Corporation is planning to issues bonds with a face amount of $2 million. If Neumann's accountant, Betty, wants to calcu
    9·2 answers
  • The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.
    9·1 answer
  • Proposed by Richard Hackman and Greg Oldham, _________ states that work has five core dimensions that impact employee satisfacti
    11·1 answer
  • Assume personal tax rates are lower than corporate tax rates. From a tax-paying shareholder point of view, how should a firm spe
    8·1 answer
  • In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classifie
    11·1 answer
  • Keeping an open mind and seeing potential good in others are behaviors considered in this element of dialogue
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!