Calculate values for the price elasticity of demand

Reference no: EM131020613

On most days, the price of a rose is $1, and 8,000 roses are purchased. On Valentine's Day, the price of a rose jumps to $2, and 30,000 roses are purchased.

a. Draw a demand and supply graph that shows why the price jumps.

b. Based on this information, what do we know about the price elasticity of demand for roses? What do we know about the price elasticity of supply for roses? Calculate values for the price elasticity of demand and the price elasticity of supply or explain why you can't calculate these values.

Reference no: EM131020613

Questions Cloud

Problem regarding the performance appraisals : Do you think performance appraisals should be done? Explain your answers. Is it worth the cost?

How should they decide the amount of their income to save : If consumers should allocate their income so that the last dollar spent on every product gives them the same amount of additional utility, how should they decide the amount of their income to save?

Find his weekly net pay : William Diggs is married and claims four withholding allowances. His weekly wages are $725. Calculate his Social Security and Medicare deductions and using the wage-bracket method, his federal income tax withholding. Find his weekly net pay.

Write a system of inequalities representing given situation : Write a system of inequalities representing this situation, where x is the number of bouquets and y is the number of wreaths. Then graph the system of inequalities.

Calculate values for the price elasticity of demand : Based on this information, what do we know about the price elasticity of demand for roses? What do we know about the price elasticity of supply for roses? Calculate values for the price elasticity of demand and the price elasticity of supply or ex..

Customer complaints and returns of a dvd : The Aurora Electronics Company has been receiving a lot of customer complaints and returns of a DVD player that it manufactures. When a DVD is pushed into the loading mechanism

Need a new warehouse facility : St Hubbins Roasters has a target D/E Ratio of 0.5. They need a new warehouse facility. Particulars follow - Construction Cost : $447,000 Flotation Cost of Equity : 5.5% Flotation Cost of Debt: 2.2% What (approximate) total figure should St. Hubbins u..

What would be their maximum ira contribution deduction : How would your answer to part (a) change, if at all, if Charles were not an active participant in his employer's retirement plan?

Describes the portion of an asset''s total expected return : The possibility that an actual outcome will be better or worse than its expected outcome. The general term that describes the portion of an asset's total expected return that is greater than the return earned on the market risk-free rate. The result ..

User Account

All Pages