Describe terms relevant to elasticity used in explanation

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Reference no: EM1328174

Solution to "Elasticity" question


Details: Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure to show the work you used to support your answer.

Objective: Use supply and demand to analyze business activities to formulate business plans.

In order to maximize points earned, the following template should be used in answering this assignment. (Please copy and paste this template into a Word document and state your answers below each question-omit this top section in your submission to lower similarity score).) Include a cover sheet and citations that follows APA guidelines:

1.a. State clearly below the formula(s) you have applied in order to calculate the elasticity (calculation is not the same as formula)?

1. b. Draw up table showing breakdown of data/calculations/results on the basis of which you arrived at your decision in 1c.

1. c. What is your conclusion regarding whether the demand is elastic/inelastic/unit elastic? Explain your answer and define terms relevant to elasticity used in your explanation.

 

Reference no: EM1328174

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