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
Slav-nsk [51]
3 years ago
9

If the price elasticity of demand for used cars priced between $3,000 and $5,000 is –1.2 (using the mid-point method), what will

be the percent change in quantity demanded when the price of a used car falls from $5,000 to $3,000?
Business
1 answer:
azamat3 years ago
6 0

Answer:

the decrease in price of used cars from $5000 to $3000 will lead to a rise in the demand of used cars by 60%

Explanation:

Mid-point method

The midpoint formula for calculating elasticity calculates change in quantity demanded and divides it by the change in the the price

The original formula is

(Q2-Q1) / (Q2-Q1)/2   / (P2-P1)  / (P2-P1/2)

Q2 is new Quantity

Q1 is old quantity

P2 is new price

P1 is old price

Since we already have the Price elasticity of demand as -1.2

the formula changes to

Percentage Change in QUantity = Price Elasticity of demand x ( (P2-P1)  / (P2-P1/2)

= -1.2 x (P2-P1)  / (P2-P1/2)

= -1.2 x (3,000-5000)  / (5000-3000/2)

-1.2 x (-2000/4000) x 100

= 60%

Therefore, the decrease in price of used cars from $5000 to $3000 will lead to a rise in the demand of used cars by 60%

You might be interested in
On March 31, 2021, Top Notch Goods committed to a plan to sell machinery equipment. The machinery equipment was available for im
Vladimir [108]

Answer:

$150,000

Explanation:

This machine is to be classified as an asset held for sale. The assets held for sake are carried on the Statement of Financial Statement at the amount lower of Fair Market Value and the Carrying Amount.

6 0
2 years ago
A decrease in demand for cameras would likely be caused by
nignag [31]
A decrease in demand for cameras would likely be caused by increased abilities in cell phones for filming
3 0
3 years ago
Why is does school last so long?
shusha [124]
WE need School to be smart, if without school, no one would be able to become great people, look at the actors, famous people, where did they start off at??
Of course, school!!
another thing:
why does it last so long like 7 hours?
well, simple:
what would you do without school at home? i doubt you would be doing school work, or something related. 
you'd watch TV, games, etc. 
TO keep our minds concentrated on our life of educating, we keep working our brains out in school. 
Hope this helped !=)
7 0
3 years ago
Read 2 more answers
Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrow
r-ruslan [8.4K]

Answer

The classification is shown below:

Explanation:

The saving refers to the amount i.e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings.  While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

So the classification is presented below:

a. Kyoko borrows money to build a new lab for her engineering firm.  = Investment

b. Rina purchases stock in Nano Speck, a biotech firm.  = saving

c. Musashi takes out a mortgage for a new home in Detroit. = investment

d.Jacques purchases a corporate bond issued by a car company. = saving

6 0
3 years ago
Wren and Zola are on a team that has been assigned to cut production costs in an electronic component production facility. For s
aksik [14]

Answer:

B) Norming

Explanation:

Analyzing the scenario above, it is possible to state that Wren and Zola are in the team development norming stage.

At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

7 0
3 years ago
Other questions:
  • Elana works an average of 60 hours each week. she wants to have a great work-life balance. how can she improve her social/emotio
    11·1 answer
  • Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f
    12·1 answer
  • On January 1, 2017, Boston Enterprises issues bonds that have a $2,150,000 par value, mature in 20 years, and pay 6% interest se
    12·1 answer
  • The improper payments made by APC occurred during the time frame that Andrea Jung served as Avon's CEO. Was she "responsible" fo
    10·1 answer
  • Nolte Co. has 4,800,000 shares of common stock outstanding on December 31, 2012. An additional 200,000 shares are issued on Apri
    15·1 answer
  • After hearing that a local tire company was looking for a new firm to handle their advertising, Kevin scheduled a sales presenta
    12·1 answer
  • 1) Imagine that we have eliminated marketing intermediaries, and you need groceries and shoes. How would you find out where the
    12·1 answer
  • What is the shape of MP curve?
    12·1 answer
  • The consumer has very few rights after purchasing a faulty product. True or False.
    13·1 answer
  • During 2020, Starnes Corporation developed a patent. Starnes incurred the following costs related to the development of the pate
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!