QUESTION:

Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries

Setler79 [48]

Answer:

0.18

Step-by-step explanation:

Given that:

P₁ = $10, P₂ = $20

From the tables Q₁ = 900, Q₂ = 800

Using midpoint method:

Percentage change in quantity = $\frac{Q_2-Q_1}{(Q_1+Q_2)/2} *100\%=\frac{800-900}{(900+800)/2}*100\%= -11.76\%\\$

Percentage change in price =

$\frac{P_2-P_1}{(P_1+P_2)/2} *100\%=\frac{20-10}{(20+10)/2}*100\%= 66.67\%\\$

Price of elastic demand = Percentage change in quantity/ Percentage change in price = -11.76% / 66.67% = 0.18

The Price of elastic demand is positive because we took the absolute value and elasticity are always positive

Therefore since Price of elastic demand < 1, the demand is inelastic in this interval.

This means that, along the demand curve between $10 to $20, if the price changes by 1%, the quantity demanded will change by 0.18%. A change in the price will result in a smaller percentage change in the quantity demanded. For example, a 10% increase in the price will result in only a 1.8% decrease in quantity demanded and a 10% decrease in the price will result in only a 1.8% increase in the quantity demanded

7 0

3 years ago

John left school with 8.43 he found a quarter on his way home and then stopped to buy an Apple for 0.89 . how much money did he

larisa [96]

Answer:

7.79

Step-by-step explanation:

8 0

3 years ago

Read 2 more answers

Running Problem, Please Help!!!

kap26 [50]

Answer:

400

Step-by-step explanation:

5 0

3 years ago

Read 2 more answers

A recent study found that 51 children who watched a commercial for Walker Crisps (potato chips) featuring a long-standing sports

hichkok12 [17]

Answer:

1

The claim is that the mean amount of Walker Crisps eaten was significantly higher for the children who watched the sports celebrity- endorsed Walker Crisps commercial

2

The kind of test to use is a t -test because a t -test is used to check if there is a difference between means of a population

3

$t = 3.054$

4

The p-value is $p-value = P(Z > 3.054) = 0.0011291$

5

The conclusion is

There is sufficient evidence to conclude that the mean amount of Walker Crisps eaten was significantly higher for the children who watched the sports celebrity- endorsed Walker Crisps commercial

The test statistics is

Step-by-step explanation:

From the question we are told that

The first sample size is $n_1 = 51$

The first sample mean is $\mu_1 = 36$

The second sample size is $n_2 = 41$

The second sample size is $\mu_2 = 25$

The first standard deviation is $\sigma _1 = 21.4 \ g$

The second standard deviation is $\sigma _2 = 12.8 \ g$

The level of significance is $\alpha = 0.05$

The null hypothesis is $H_o : \mu_1 = \mu_ 2$

The alternative hypothesis is $H_a : \mu_1 > \mu_2$

Generally the test statistics is mathematically represented as

$t = \frac{\= x_1 - \= x_2}{ \sqrt{ \frac{s_1^2}{n_1} + \frac{s_2^2}{n_2} } }$

=> $t = \frac{ 36 - 25}{ \sqrt{ \frac{ 21.4^2}{51} + \frac{ 12.8^2}{41} } }$

=> $t = 3.054$

The p-value is mathematically represented as

$p-value = P(Z > 3.054)$

Generally from the z table

$P(Z > 3.054) = 0.0011291$

=> $p-value = P(Z > 3.054) = 0.0011291$

From the values obtained we see that $p-value < \alpha$ so the null hypothesis is rejected

Thus the conclusion is

There is sufficient evidence to conclude that the mean amount of Walker Crisps eaten was significantly higher for the children who watched the sports celebrity- endorsed Walker Crisps commercial

5 0

3 years ago

24 dogs to 56 cats<br><br><br> In the simplest form

Lubov Fominskaja [6]

Answer:

Simplify them to the lowest.

What's the GCF( Greatest Common Factor). It's 8. So divide both sides by 8.

24/8 = 3

56/8 = 7

so it's

3 dogs to 7 cats

Step-by-step explanation:

5 0

2 years ago

Read 2 more answers