The demand for pianos increases from 400 to 500 when the price decreases from $12000 to...

Question

Question

business economics

Answer 1

Answer #1

Option (c).

Elasticity = (Change in quantity demanded / Average quantity demanded) / (Change in price / Average price)

= [(500 - 400) / (500 + 400)] / [$(10,000 - 12,000) / $(10,000 + 12,000)]

= (100 / 900) / (-2,000 / 22,000)

= -1.22

Absolute value = 1.22

Answer 2

Similar Homework Help Questions

When the price of movies decreases from $15 to $10, the number of tickets sold increases...

When the price of movies decreases from $15 to $10, the number of tickets sold increases from 3000 to 5000. What is the price elasticity of demand using the midpoint formula? Select one O a. 400 O b. 1.8 c. 1.25 O d.0.025
When the price of movies decreases from $15 to $10, the number of tickets sold increases...

When the price of movies decreases from $15 to $10, the number of tickets sold increases from 3000 to 5000. What is the price elasticity of demand using the midpoint formula? Select one: O a. 400 O b. 1.8 O c. 1.25 O d. 0.025 Next page Answers Jump to...
When price rises from $10 to $15, the quantity demanded decreases from 100 to 70. Calculate...

When price rises from $10 to $15, the quantity demanded decreases from 100 to 70. Calculate the price elasticity of demand using the midpoint formula Suppose the demand for roses increases from 500 to 600 stems when income rises from $10,000 to $20,000. Calculate the income elasticity for roses using the midpoint formula.

When the price of movies decreases from $15 to $10, the number of tickets sold increases...

When the price of movies decreases from $15 to $10, the number of tickets sold increases from 3000 to 5000. What is the price elasticity of demand using the midpoint formula?
Suppose that the price of a head of lettuce increases from $1 to $2, and this...

Suppose that the price of a head of lettuce increases from $1 to $2, and this causes consumption of lettuce to decrease from 40 heads to 20 heads. Show this change in a graph. (Be sure to label the axes, the curve and the two price points in the graph) (1 point) According to the graph, if price decreases from $18 to $12, What is the percentage change in price using the midpoint method? (Provide the formula and your calculations.)...
Using the midpoint method, what is the price elasticity of demand when the price increases from...

Using the midpoint method, what is the price elasticity of demand when the price increases from $5 and $6? Group of answer choices A. 1.8 B. 0.6 C. 13 D. 3.7 E. 1

When price rises from $10 to $15, the quantity demanded decreases from 100 to 70. Calculate...

When price rises from $10 to $15, the quantity demanded decreases from 100 to 70. Calculate the price elasticity of demand using the midpoint formula.
Suppose the price of widgets increases from $15 to $20 and the quantity demanded decreases from...

Suppose the price of widgets increases from $15 to $20 and the quantity demanded decreases from 100 to 50 units. Calculate the elasticity of demand using the midpoint method. Round your answer to the nearest 2 digits and do NOT take the absolute value.
The demand for sushi increases by 20 percent when the price of burritos increases by 40...

The demand for sushi increases by 20 percent when the price of burritos increases by 40 percent. What is the cross price elasticity of demand for sushi? Select one: Oa. 2 O b. o.5 O c. 20 O d. 40 Next page Answers Jump to... 555&page# 5#

12. An in e in the price of a commodity from $20 to $30 causes quantity...

12. An in e in the price of a commodity from $20 to $30 causes quantity nded to fall from 500 to 300. Which of the following is true for elasticity (absolute value)? A) Point elasticity is 1.25 so total revenue decreases B) Point elasticity is 0.8 so total revenue increases C) Arc (Midpoint) elasticity is 1.25 so total revenue decreases D) Arc (Midpoint) elasticity is 0.8 so total revenue increases E) Are (Midpoint) elasticity is 1.25 so total revenue...