Calculate point price elasticity a a price

Assignment Help Business Economics

Reference no: EM13148519

Suppose the demand function for ginger ale is: Q = 20 - 2P. a.) If the price were increased from $5 to $6 what would happen to total revenue? b.) Calculate arc elasticity at the interval between P=$5 and P=$6 c.) Calculate point price elasticity a a price of $3 and calculate the point price elasticity at a point of $9. Is the demand price elastic or inelastic at these points? d.) At which price would a change in price and quantity result in no change in total revenue?

Reference no: EM13148519

Questions Cloud

What is the activation energy for the reaction : If the rate increases by a factor of 10 as the temperature increases from 35 °C to 70°C, what is the activation energy for the reaction?

What is the point price elasticity of demand at a price : What is the point price elasticity of demand at a price of $70? What is the point price elasticity of demand at a price of $60?

How will the programs affect the debt : How will the programs affect the debt? How will they affect private investment? Is crowding out a concern in the short versus long run as a result of the proposed policies?

Which independent variable correlation-dependent variable : Develop a correlation matrix. Which independent variable has the strongest correlation with the dependent variable? Does it appear there will be any problems with multicollinearity?

Calculate point price elasticity a a price : Calculate point price elasticity a a price of $3 and calculate the point price elasticity at a point of $9. Is the demand price elastic or inelastic at these points?

How many species of insects would be expected on island d : A scientist has studied the community of insects on these islands and determined that the z-slope for them is 0.26. If island A is 420 ha and has 1450 species of insects, how many species of insects would be expected on island D which is 24ha?

What is the ph change : What is the PH change of a 0.270M solution of Citric Acid (pKa = 4.77) if citrate is added to a concentration of 0.145M with no change in volume?

Compute the change in molar enthalpy : Calculate the change in entropy when one mole of ice at ?10.0°C and 1 atm is converted to liquid water at ?5.0°C and 1 atm. The molar enthalpy of fusion for H2O

Susceptible to fraud and errors : Consider how an organization must manage cash, receivables, and inventory. Which of the three variables is the most important to manage? Is one more susceptible to fraud and errors than the others? Explain your answer. How would a misstatement in ..

User Account

All Pages