Find the price elasticity of demand at each price

Assignment Help Econometrics

Reference no: EM13224026

Granny's Restaurant sells apple pies. Granny knows that the demand curve for her pies does not shift over time, but she wants to learn more about that demand. She has tested the market for her pies by charging different prices. When she charges $4 per pie, she sells 30 pies per week. When she charges $5 per pie, she sells 24 pies per week. If she charges $4.50, she sells 27 apple pies per week.

a. Is the apple pie market perfectly competitive? Why or why not?

b. With this data, draw a graph of the linear demand curve for Granny's apple pies.

c. Find the price elasticity of demand at each of the three prices.

Reference no: EM13224026

Questions Cloud

Defend a hot babe used to sell cars on a tv commercial : which is immoral. Is this valid? Defend a hot babe used to sell cars on a TV commercial. Defend requiring women to cover their bodies.

Explain the hydroxide reacts with the carbon dioxide : Solid lithium hydroxide is used in space vehicles to remove the carbon dioxide gas exhaled by astronauts. The hydroxide reacts with the carbon dioxide to form solid lithium carbonate and liquid water.

Defend a hot babe used to sell cars on a tv commercial : which is immoral. Is this valid? Defend a hot babe used to sell cars on a TV commercial. Defend requiring women to cover their bodies.

Compute the fraction of lidocaine present in the form lh : You prepare a solution from 10.0 mL of 0.100 M MOPS buffer (3-morpholinopropane-1-sulfonic acid) and 10.0 mL of 0.078 M NaOH. Next, you add 1.00 mL of 7.81 × 10-6 M lidocaine to this mixture

Find the price elasticity of demand at each price : When she charges $4 per pie, she sells 30 pies per week. When she charges $5 per pie, she sells 24 pies per week. If she charges $4.50, she sells 27 apple pies per week.a. Is the apple pie market perfectly competitive

Compute the ph at each of the points : The pKb values for the dibasic base B are pKb1 = 2.1 and pKb2 = 7.8. Calculate the pH at each of the following points in the titration of 50.0 mL of a 0.75 M B(aq) with 0.75 M HCl(aq).

Discuss the differences and the benefits to an organization : How can you create employee loyalty through your orientation and socialization process? Discuss the differences and the benefit(s) to an organization and contribute to its competitive advantage?

What will happen to output and the price level in the short : Suppose that an economy initially at full-employment is hit by an adverse supply shock a) What will happen to output and the price level in the short run b) What will happen to output and the price level in the long run

Explain how many grams of o2 can be prepared : Decomposition of KClO3 is sometimes used to prepare small amounts of O2 in the laboratory: 2KClO3(s) 2 KCl(s) + 3 O2(g). How many grams of O2 can be prepared from 4.50 g of KClO3?

User Account

All Pages