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
Kisachek [45]
3 years ago
6

When the price of a bar of chocolate is $1.00, the quantity demanded is 100,000 bars. When the price rises to $1.50, the quantit

y demanded falls to 60,000 bars. Calculate the price elasticity of demand using the mid-point method. Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is: -1.25 . b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is: -1.25 .
Business
1 answer:
Bas_tet [7]3 years ago
7 0

Answer:

a. -1.25

b. -1.25

Explanation:

Price elasticity is used to measure the change in demand as a result of a change in price.

Formula is;

= % change in Quantity/ % change in Price

a. Suppose the price increases from $1.00 to $1.50. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{60,000 - 100,000}{\frac{100,000 + 60,000}{2}} \\\\= -0.5

% Change in Price using midpoint formula

=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.5 - 1.00}{\frac{1.00 + 1.50}{2} } \\\\= 0.4

= -0.5/0.4

= -1.25

b. Suppose the price decreases from $1.50 to $1.00. The price elasticity of demand is:

% change in Quantity using the midpoint formula;

=\frac{Q2 - Q1}{\frac{Q1 + Q2}{2} } \\\\= \frac{100,000 - 60,000}{\frac{100,000 + 60,000}{2}} \\\\= 0.5

% Change in Price using midpoint formula

=\frac{P2 - P1}{\frac{P1 + P2}{2} } \\\\= \frac{1.00 - 1.50}{\frac{1.00 + 1.50}{2} } \\\\= -0.4

= 0.5/-0.4

= -1.25

You might be interested in
What are the three duties of a central bank?
murzikaleks [220]

Conducting monetary policy

Supervising and regulating depository institutions

Maintaining the stability of the financial system

6 0
3 years ago
3.A lockbox plan is most beneficial to firms that a. have widely dispersed manufacturing facilities. b. have a large marketable
kramer

Answer:

D) have customers who operate in many different parts of the country.

Explanation:

A lockbox is basically a bank mailing address where a company's clients can send their payments to. It is similar to mailbox that receives letters, only that this one receives checks and cash. The bank is in charge of opening the lockbox and depositing the cash and checks to the company's account, and reporting the information.

7 0
3 years ago
Read 2 more answers
Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are
kondor19780726 [428]

Answer:

Read the potential thesis, as it appears below. Is the thesis specific enough to provide clear direction to the writer?

In "Claiming an Education," Adrienne Rich uses logos, ethos, and pathos.

5 0
3 years ago
Which of the following is true? Overhead costs are often affected by many issues and are frequently too complex to be explained
11111nata11111 [884]

Answer:

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

Explanation:

An overhead cost is not directly defined, to be that of material, or labor, or any other unit, overhead include, many factors, electricity usage, machine hours usage, water usage, or the capacity utilization of machinery, and various other factors. Since its computation and allocation is not clear many a times, a single overhead like that of electricity, has many factors, ideal usage of electricity, or machine hours used in production or simply the total cost of overheads for that month or building or etc: and its utilization. In short, to conclude we can state that overhead costs are complex in nature.

All other options are false.

Final Answer

Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.

8 0
2 years ago
The Hawthorne studies began as the type of experiment recommended by Scientific Management. Researchers were trying to find the
3241004551 [841]

Answer:

George Elton Mayo

Explanation:

Based on the scenario being described within the question it can be said that the individual being mentioned is George Elton Mayo. Mayo was an Australian Psychologist who was born on December 26, 1880. Mayo greatly contributed to the creation of the management theory which helped establish modern human relations management methods as well as creating the frame and focus on social dynamics.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Selling with criminal negligence alcoholic beverage to a minor is a
    11·2 answers
  • ​refer to table 3-37. sarah and charles are both potters and each can switch between the production of vases and mugs at a const
    5·1 answer
  • As a financial planner, you offer unbiased advice to your clients. Which principle of ethics are you complying with?
    13·2 answers
  • The Cash Over and Short account:Select one:a. Is used to record a credit balance in the cash account.b. Is an income statement a
    11·1 answer
  • After several years of volunteering to play the piano and sing at a local nursing home, Callie decided the time was right to tap
    13·1 answer
  • The following information is available for Birch Company at December 31:
    7·1 answer
  • If a company has $2,000,000 invested in buildings, equipment, and other assets and desires to earn a return on investment of 30%
    5·1 answer
  • A bank is considering two securities: a 30-year treasury bond yielding 7 percent and a 30-year municipal bond yielding 6 percent
    7·1 answer
  • A 6.75 percent coupon bond with 26 years left to maturity can be called in six years. The call premium is one year of coupon pay
    11·1 answer
  • A unit volume objectives for pricing should be used judiciously because higher volume goals can sometimes result in Blank______.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!