By what percentage would rise in the price reduce quantity

Assignment Help Econometrics

Reference no: EM13207173

How do you calculate price elasticity of demand? If 50 Units of a good are demanded at a price of $1 per unit. A reduction in price to $0.20 results in an increase in quantity demand to 70 Units. Show that these data yield a price elastity of $0.25. By what percentage would a 10 % rise in the price reduce the quantity demanded, assuming price elastisity remains constant along the demand curve?

Reference no: EM13207173

Questions Cloud

How will the equilibrium price change after the substitute : Suppose that the market for some product has a linear downward?sloping demand curve and a linear upward sloping supply curve. Then suppose that the price of a substitute good increases and the price of an input to production also increases.

What are the demensions of the field of the largest : a farmer has 1225 feet of fencing and wants to fencing and wants to fence off a rectangular field that borders a straight river. He does not need a fence along the river. what are the demensions of the field of the largest are he can fence?

Explain solution of sodium cyanide : Describe, with equations, how a solution of sodium cyanide, NaCN, with hydrogen cyanide, HCN, functions as a buffer

What does the use of dialect bring to the meaning of a work : In a speech given in 1852, Frederick Douglas raised the question, "What to the Slave, is the Fourth of July". How does literature of the reconstruction address the issue of patriotism or country? How does this literature relate to modern- day soci..

By what percentage would rise in the price reduce quantity : How do you calculate price elasticity of demand If 50 Units of a good are demanded at a price of $1 per unit. A reduction in price to $0.20 results in an increase in quantity demand to 70 Units. Show that these data yield a price elastity of $0.2..

Find the first and third quartiles : Find the first and third quartiles, Q1 and Q3, of the following set of numbers.

Explain gas chromatography for the detection : Match the detector or detectors that can be used in gas chromatography for the detection of the following list of analytes. (More than one detector may be appropriate for a given analyte, and a given detector may be appropriate for more than one g..

Find two consecutive numbers : The perimeter of a rectangle is 42 feet. The length of the rectangle is 3 feet more than twice the width. Find the length and width of the rectangle.

How the equilibrium quantity of pianos remained constant : show the market for pianos in 2008. Between 2008 and 2009, the equilibrium quantity of pianos remained constant, but the equilibrium price of pianos increased. From this, you can conclude that between 2008 and 2009, the supply of pianos

User Account

All Pages