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Alchen [17]
4 years ago
11

Nicolette raised her quantity demanded of hockey pucks from 100 to 150 when the price fell from $5 to $3 per puck. using the mid

point method, her price elasticity of demand is
Business
1 answer:
lorasvet [3.4K]4 years ago
7 0
By definition we have to:
 PED = ((Q2-Q1) ÷ (Q2 + Q1) / 2) / ((P2-P1) ÷ (P2 + P1) / 2)
 P1 = Price Point 1
 Q1 = Quantity Point 1
 P2 = Price Point 2
 Q2 = Quantity Point 2
 Substituting the values we have:
 PED = ((150-100) ÷ (150 + 100) / 2)/((3-5) ÷ (3 + 5) / 2)
 PED = -0.8
 answer:
 her price elasticity of demand is -0.8
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Answer:

the average annual economic growth rate in Taiwan from 1961 to 1981 was 41.42%

Explanation:

Hi, we need to use the following formula.

FV=PV(1+r)^{t}

Where:

FV = GDP in 1981 ($1,000)

PV = GDP in 1961 ($500)

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t = years from 1981 to 1961 (20 years)

So, it should look like this:

1,000=500(1+r)^{20}

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\frac{1,000}{500} =(1+r)^{20}

2=(1+r)^{20}

\sqrt[20]{2} -1=r

r=0.4142

So, the growth rate of Taiwan´s GDP is 41.42%

Best of luck.

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