Calculate your price elasticity of demand of widgets

Reference no: EM13182919

Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it Elastic, Inelastic, or Unitary Elastic? Why?

Reference no: EM13182919

Questions Cloud

How the supply of loanable funds will shift to the right : The supply of loanable funds will shift to the right if either: A) Tax reforms encourage greater saving or investment tax credits were increased B) The budget deficit became larger or tax reforms discouraged savings C) The budget deficit became large..

Explain the price elasticity of the aggregate industry : A firm in a competitive industry has marginal revenue which depends on the shape of the consumers' demand curve. In a competitive industry, the price elasticity of the aggregate industry supply curve will always be greater than or equal to the pric..

What is the absolute size of it public debt : Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.What ..

What quantities of will you purchase to maximize utility : The utility-maximization model assumes that the typical consumer is rational and acts on the basis of well-defined preferences. Because income is limited and goods have prices, the consumer cannot purchase all the goods and services he or she migh..

Calculate your price elasticity of demand of widgets : Suppose the price of widgets rises from $5 to $7 and consumption of widgets falls from 25 widgets a month to 15 widgets. Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets? Is it..

Justify the government intervention : markets often can and do fail to deliver efficiency, equity or both. The most common claims of such apologists about the failure of markets to deliver efficiency or equity are (1) monopoly power, (2) externalities, (3) information asymmetry, and (..

Find number of workersthen the long run average cost curve : Suppose McDonalds puts up five new stores in San Francisco using exactly the same floor plan, capital equipment, and number of workersthen the long run average cost curve of McDonalds would be and the company experiences

What is the operating income for both firms : Determine the earnings after taxes and compute the percentage increase in these earnings from the answers you derived in part b. d. Why are the percentage changes different?

User Account

All Pages