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pychu [463]
4 years ago
12

Suppose the price of a bag of tortilla chips decreases from $3.00 to $2.50 and, as a result, the quantity of tortilla chips dema

nded increases from 200 bags to 300 bags. Using the midpoint method, the price elasticity of demand for tortilla chips in the given price range is 0.33 0.45 2.20 3.00
Business
1 answer:
Tresset [83]4 years ago
4 0

Answer:

2.20

Explanation:

The Price elasticity will be:

Δdemand/ΔPrice

<u>The mid point is used to calculate the increases.</u>

Δdemand = ΔQ/midpointQ

(Q2+Q1)/2 = mid point quantity = (300+ 200)/2 = 250

ΔQ = 300-200 = 100

Δdemand = 100/250 = 0.4

<u>Same procedure is applied with the Price numbers:</u>

Δprice = ΔP/midpointP

(P2+P1)/2 = mid point price = (3+ 2.5)/2 = 2.75

ΔP = 2.5-3 = 0.5

Δprice = 0.5 / 2.75 = 0.181818

FInally we calculate the price elasticity:

Δdemand/ΔPrice

0.4/0.1818181818 = 2.2

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You just sold 300 shares of stock at a price of $42.06 a share. You purchased the stock for $39.80 a share and have received tot
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Answer:

$678

Explanation:

Given that,

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Total capital gain on this investment:

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= (300 × $42.06) - (300 × $39.80)

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3 years ago
The goals of labor unions differ from those of management because employers want more profits and labor wants: Multiple choice q
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The goals of labor are such that they want better pay and working conditions.

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8 0
2 years ago
A business buys motors that it uses to make blenders and mixers. The motors are an example of?
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Answer:

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Gallagher Corporation

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