The price elasticity of demand

Assignment Help Microeconomics
Reference no: EM13173575

Suppose the demand for a product is given by P = 40 4Q. Also, the supply is given by P = 10 + Q.

What is the price elasticity of demand at the equilibrium price?

Reference no: EM13173575

Questions Cloud

Characteristics of data warehouse according to inmon : What are the four fundamental characteristics of a data warehouse according to Inmon? Explain each of these characteristics in the context of a company that generates daily transaction data from different departments in each store and there are sever..
Technology and art : Art is something that is going to appeal to my eyes that create a sense of feelings, emotions and ideas. Art can be very dramatic, inspiring, captivating with such a style that can be express in movement, culture and some sort of expression.
The profit maximizing monopolist charge : What is the monopolist's profit maximizing level of output? What price will the profit maximizing monopolist charge?
Adapt their products more to global markets : American fast food, music, and movies have become popular around the world with little product adaptation, whereas U.S. retailers, banks, and beer companies have had to adapt their products more to global markets. Why?
The price elasticity of demand : Suppose the demand for a product is given by P = 40 4Q. Also, the supply is given by P = 10 + Q. What is the price elasticity of demand at the equilibrium price?
Kinds of store receipts allowing consumers feedback : We see surveys on all kinds of store receipts allowing consumers to give feedback in exchange for being entered into a drawing for a prize. Evaluate the purpose and usefulness of these surveys. Consider all stakeholders in your answer.
Explain quantity theory of money : Using the Federal Reserve's report (see link below) on Money Stock Measures for June 7, 2012 determine the growth rate of the Seasonally Adjusted M1 Money Supply between January 2011 and January 2012.
Hydrologic cycle and various methods of water use : Examine the hydrologic cycle and various methods of water use and management. What changes might occur in the hydrologic cycle if our climate were to warm up or cool down significantly?
Byproduct of adding chlorine to the water is thms : The byproduct of adding chlorine to the water is THMs (trihalomethanes). Some studies have shown that THMs might cause miscarriage and other health effects.

Reviews

Write a Review

Microeconomics Questions & Answers

  Construct a budget line for having a family

Indifference theory can explain all rational choices and behavior and try the theoryout on this situation. Suppose the only consideration for couples to have a bby or not was money. If a baby costs $8,000 a year.

  Draw demand and supply on a graph

Calculate the equilibrium price and quantity that will prevail in a free market and calculate the price elasticity of demand and the price elasticity of supply at the equilibrium.

  Define four-firm concentration ratio and herfindahl index

Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..

  Computing increase in sales volume-price elasticty

Angelica pickles manager a Quick copy franchise White Plains, New York. Pickles projects reducing copy 5¢ to 4¢ each, Quick Copy's $600-per-week profit contribution will increase by one-third.

  What shift factors of supply might be at work

Write a brief report describing what shift factors of supply and/or demand might be at work and how you would label those factors. Conclude the report with your forecast of what would likely result one month after the publication of the article.

  E-business environment and marketing system

Discuss the potential risks of using Web 2.0 tools. Provide several examples. What are the benefits of "build-to order" to buyers and sellers? Are there any disadvantages?

  Difference between accounting and economic profit

What is the law of diminishing returns? Can you provide an example of when diminishing returns have set in (could set in) at a work place?

  What fact might lead the manager to be concerned

What fact might lead the manager to be concerned? If true, what do you think is likely to happen to the price of products G.R. Dry Foods sells?

  Calculate the correlations between life expectancy

Calculate the correlations between life expectancy and the two measures of GDP per person

  Explain how a positional arms race can occur

Using a prisoner's dilemma game such as the "wedding game." explain how a positional arms race can occur. In your answer be sure to explain positional arms races, the nature of the wedding game, etc.

  Define economic profit or loss, atc

b. What is the Economic profit or loss you are making? c. What output level is the minimum point for Average Total Costs (ATC)? d. What output level, Q, and price/trip, P, will economic profits be zero? Note

  Determine challenger minimum cost of life

VMIC Corporation has asked you to look at the following data. The interest rate is 10 percent.

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!

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