Calculate the elasticity of demand

Assignment Help Econometrics

Reference no: EM13178941

Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.

Price of crackers Quantity Demanded (per month)

$3 80

$2.5 120

$2 160

$1.5 200

$1 240

$1.00 - $1.50: ___________________________________

$1.50 - $2.00: ___________________________________

$2.00 - $2.50: ___________________________________

$2.50 - $3.00: ___________________________________

If the price of graham crackers is $2.50 should firms raise or lower their prices if they want to increase revenue? Explain this in terms of elasticity.

Reference no: EM13178941

Questions Cloud

Define the npv investment criterion : John Piderit the general manager of the Western Tool Company is considering introducing some new tools to the company's product line. The top management firm has identified three types of tools (referred to as projects A, B, and C). the various di..

Explain what is the volume of unit cell : Calculate the density of Slackium Oxide. (g/cm^3) What is the Volume of unit cell (cm^3)

How many adult tickets were sold : A total of 497 tickets were sold for the school play. They were either adult tickets or student tickets. There were 53 fewer student tickets sold than adult tickets. How many adult tickets were sold?

Statement of changes in stockholders equity : Prepare an income statement, a statement of changes in stockholders equity, a balance sheet and a statement of cash flows.

Calculate the elasticity of demand : Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.Price of crackers Quantity Demanded (per month)$3 80 $2.5 120

State principles of general chemistry : Principles of general chemistry second edition. In determining the average rate over an entire experiment, do I need to take the coefficients of the reactants into account?

Find the length of the shadow cast by a building : If the sun is 55 above the horizon, find the length of the shadow cast by a building 86 ft tall. round your answer to the nearest tenth.

How many dog biscuits were in the box originally : Yankee found and ate three more than one half of the remaining biscuits. finally, murray ate three more than one half of the remaining biscuits. how many dog biscuits were in the box originally?

State what are the drawbacks for extending the therapy : While Xeloda works well, it is effective for colorectal tumors and liver cancer. What are the drawbacks for extending this therapy to other types of cancer?

User Account

All Pages