Enable text based alternatives for graph display and drawing entry

Try Another Version of These Questions

Question 1
When the local grocery store puts laundry detergent on sale, reducing its price from $4.10 per item to $3.40 per item, the quantity sold increases from 190 per week to 270 per week. This response illustrates which of the following concepts?

Hint

Question 2
What does this concept represent?

Hint

Question 3
Let's look at the first part of the formula. How do we find the percentage change in quantity using the midpoint formula?

Hint

Question 4
How do we express the percentage change in quantity using the variables Q1 (original quantity) and Q2 (new quantity)?

Hint

Question 5
Now calculate the percentage change in quantity demanded by plugging in the numbers for Q1 and Q2.

percentage change in quantity demanded =
Hint

Question 6
Now let's look at the second part of the formula. How do we find the percentage change in price using the midpoint formula?

Hint

Question 7
How do we express this using the variables P1 (original price) and P2 (new price)?

Hint

Question 8
Now plug in the numbers for P1 and P2 to calculate the percentage change in price.




Question 9
Finally, using the whole formula, calculate the value of the price elasticity of demand for laundry detergent.

price elasticity of demand =
Hint

Question 10
Explain what this result means in words. Then click 'Submit' to compare your answer to ours.

Hint