Try Another Version of These Questions

Suppose that a store decreases the price of peanut butter from $4.5 to $3.8. As a result, quantity demanded increases from 210 to 270.

Using the **mid-point elasticity approach**, calculate price elasticity of demand.

Your answer should be expressed in absolute value terms.

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

Suppose that a store decreases the price of laundry detergent from $4.5 to $3.5. As a result, quantity demanded increases from 210 to 250.

Based on this information, find the price elasticity, which you can use to classify the demand curve as price elastic, unit elastic or inelastic.

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

Consider the following demand schedule for bags.

Price | Quantity Demanded |
---|---|

$5 | 384 |

$10 | 359 |

$15 | 334 |

$20 | 309 |

$25 | 284 |

$30 | 259 |

$35 | 234 |

$40 | 209 |

Suppose that the store increases the price of bags from $35 to $40.

Using the **mid-point approach**, calculate the percentage change in quantity demanded.

Hint

Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172

Enter DNE for Does Not Exist, oo for Infinity

Consider the following demand schedule for bags.

Price | Quantity Demanded |
---|---|

$5 | 397 |

$10 | 387 |

$15 | 377 |

$20 | 367 |

$25 | 357 |

$30 | 347 |

$35 | 337 |

$40 | 327 |

Suppose that the store increases the price of bags from $10 to $15.

Using the **mid-point approach**, calculate price elasticity of demanded.

Hint

Enter DNE for Does Not Exist, oo for Infinity

Consider the following demand schedule for jeans.

Price | Quantity Demanded |
---|---|

$5 | 383 |

$10 | 358 |

$15 | 333 |

$20 | 308 |

$25 | 283 |

$30 | 258 |

$35 | 233 |

$40 | 208 |

Suppose that the store increases the price of jeans from $10 to $15.

Based on this information classify the demand curve.

Hint

Box 1: Select the best answer