Calculate the implied arc income elasticity of demand

Assignment Help Econometrics

Reference no: EM13212910

Deluxe Carpeting a leading manufacturer of carpeting sold 28 million square yards of carpeting at a price of $16 per yard. This year, GNP per capita is expected to fall from $19,000 to $17,000 as the nation enters a recession. Deluxe expects that current-year sales to fall to 20 million square yards. a. Calculate the implied arc income elasticity of demand. b. Given a price elasticity coefficient of -2.5, to what level would price have to be lowered to maintain sales at a level of 28 million square yards?

Reference no: EM13212910

Questions Cloud

Long-term investment projects : you realize your company would make a significant profit from doing business in China. You also discover that policies on employee welfare, labor relations, etc. are the antithesis of what your CEO firmly believes.

What is the formula for the area of a circle : Since the end of World War II, manufacturing firms in the United States and in Europe have been moving farther and farther outside of central cities. At the same time, firms in finance, insurance, and other parts of the service sector have been lo..

Compare to the actual performance : Get information about a car engine .drive the ideal performance using the appropriate cycle and compare to the actual performance.

Calculate length from the fulcrum to the resistance force : A first class lever, in static equilibrium, has a 50lb resistance force and 15lb effort force. The lever's effort force is located 4 ft from the fulcrum.3. Using static equilibrium calculations, calculate the length from the fulcrum to the resista..

Calculate the implied arc income elasticity of demand : Deluxe Carpeting a leading manufacturer of carpeting sold 28 million square yards of carpeting at a price of $16 per yard. This year, GNP per capita is expected to fall from $19,000 to $17,000 as the nation enters a recession. Deluxe expects that ..

What is the advantage of sketching an object : What is the advantage of sketching an object first before drawing it using CAD?

Determine the magnitude of its total accleration : determine the magnitude of its total accleration when (a) t=0 and (b) t=2 Whats the solution.

What is the length of the slope of the ramp : Using the knon height and calculated base lenghth, what is the length of the slope of the ramp.

Calculate total cost of production for each of five outputs : The following table provides the total input requirements for each of five different total output levels: Q = 1 Q = 2 Q = 3 Q = 4 Q = 5 TECH. K L K L K L K L K L A 2 5 1 10 5 14 6 18 8 20 B 5 2 8 3 11 4 14 5 16 6 a.

User Account

All Pages