User Account

All Pages

Calculate the price elasticity of demand

Assignment Help Business Economics
Reference no: EM131405521

Toll rate in 2012: $10.00. Toll rate in 2016: $9.00.

For every 100 cars using the toll roads in 2012, 120 cars will use the toll roads in 2016.

(Part A) Using the midpoint formula, calculate the price elasticity of demand for Scenario 1 and Scenario 2.

(Part B) Assume 50,000 cars use California toll roads every day in 2012. What would be the daily total revenue received for each scenario in 2012 and in 2016?

(Part C) Is demand under Scenario 1 and under Scenario 2 price elastic, inelastic, or unit elastic? Briefly explain.

Reference no: EM131405521

Questions Cloud

What would he or she prepare for the criminal investigator : Discuss the role and responsibility of the first officer on the scene before the investigators arrive.What would he or she prepare for the criminal investigator?
What is the size of the labor force in the united states : (Part B1) Refer to the data in the above scenario. What is the size of the labor force in the United States for the given year? (Part B2) Refer to the data in the above scenario. What is the unemployment rate in the United States for the given year?
Comment on the credibility of the suppliers claim : The supplier claims that no more than 2% of the items in the shipment are defective. Carry out an appropriate hypothesis test and comment on the credibility of the supplier's claim.
Should we reject the directors claim : In a sample of 300 persons to whom materials were sent, 30 students applied for admission. In a two-tail test at the 0.05 level of significance, should we reject the director's claim?
Calculate the price elasticity of demand : For every 100 cars using the toll roads in 2012, 120 cars will use the toll roads in 2016. (Part A) Using the midpoint formula, calculate the price elasticity of demand for Scenario 1 and Scenario 2.
Is the human resources directors claim credible : In a random sample of 400 employees, screening detected at least one of these drugs in the systems of 8% of those tested. At the 0.025 level, is the human resources director's claim credible? Determine and interpret the p-value for the test.
Federal intelligence surveillance court : Locate 1-2 articles from a news source that discusses the Federal Intelligence Surveillance Court (FISA Court) and write a 1-2 page paper that answers the following questions:
Identify the economic factor that has had the most impact : Consider an organization you are familiar with. Identify the economic factor that has had the most impact on the organization's earnings in the past 5 years.
Importance of the event for business decisions : Using the Discuss tool, post a brief summary of your views on the importance of the event for business decisions.

Reviews

Write a Review

Business Economics Questions & Answers

  Contracted and jobs dried up

Even those who were not directly affected by the destruction were hurt because businesses failed or contracted and jobs dried up.

  David black representing the management of the automobile

David black, representing the management of the automobile manufacturers disagreed with McDonald's assessment. Black cited studies that indicated price elasticity's ranging from 0.5 to 1.5.

  The labor market portray graphically the outcomes

PART TWO: THE LABOR MARKET Portray graphically the outcomes of before and after the imposition of minimum wage in the following TWO hiring scenarios of Kellogg’s firm. Label the wage paid by Firm B before minimum wage imposition as WB1 and wage paid ..

  Loan principal and interest on the agreed upon date

On March 1, Emily loaned Billy $1,000. Emily charged a monthly interest rate of 0.10 percent on the loan. Billy repaid all of the loan principal and interest on the agreed upon date, March 31. If the price of the camcorder on March 1 was $1,000 and f..

  Occupational safety and health administration

The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..

  Apply supply and demand analysis to price determination

Apply supply and demand analysis to price determination and predict changes in supply and/or demand Analyze the effects of elasticity on consumer and business behavior

  Derive the total product or output

Suppose you are given the following Total Product Function: ,where Q is total output or units produces; K, capital; L, labor; and M, materials.; that is, this is a input factor production function. Suppose K = 1,000; L = 200 workers; and M = value of..

  Firm is facing downward-sloping demand curve

A firm is facing a downward-sloping demand curve: q = 96 - 2P. Write the inverse demand function, i.e. write P as a function of q. Derive the total revenue as a function of q. Derive the marginal revenue as a function of q.

  What is the meaning of the slope of two budget constraints

Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information; M=4000, Px=800, and Py=100, What is the ..

  What will be the equilibrium quantity

The Competitive Fringe: Consider a market with one large firm and many small firms. The supply curve of the small firms taken together is S(p) = 100 + p. The market demand curve for the product is D(p) = 200 − p. The cost function for the large firm ..

  What is the segmentation and target segment

What is the Segmentation Choices for this Market and why is this choice relevant? What is the target segment(s)? Why is this the most attractive segment? What is the estimated segment size? What is the consumer promise or value proposition (summarize..

  Income will each acre generate

How much income will each acre generate. What are the TR moreover MR for each acre.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd