Using the midpoint formula-what is the elasticity of demand

Assignment Help Business Economics

Reference no: EM13740087

Suppose the demand for oranges in the U.S. is: P = 5.35 - .012 Q

Where Q is the quantity demanded for oranges in the U.S. (measured in millions of boxes per year) and P is the price per box.

Suppose the current price of oranges is $3 per box. A deep freeze comes through a wipes out part of the Florida orange crop, raising the price of oranges to $3.25 per box.

a) Using the midpoint formula, what is the elasticity of demand for oranges at $3 per box?

b) What happens to total revenues from oranges due to the freeze? Why?

Reference no: EM13740087

Questions Cloud

Change the demands on human resource management : The trends and arrangements that encourage international trade also increase and change the demands on human resource management

Raise revenues to fund public projects like schools : Governments often need to raise revenues to fund public projects like schools, road maintenance, parks, etc. One way governments raise revenue is to place taxes on the sale of certain goods. Suppose a government is debating whether to raise taxes on ..

What are karl''s option''s : What are the ethical and legal issues at stake in this scenario. What are Karl's option's

Identify the key factors that led to britains successful : Identify the key factors that led to Britain's successful imposition of its presence and trade policies on China, despite communications like those from Emperor Ch'ien-lung.

Using the midpoint formula-what is the elasticity of demand : Suppose the demand for oranges in the U.S. is: P = 5.35 - .012 Q. Where Q is the quantity demanded for oranges in the U.S. (measured in millions of boxes per year) and P is the price per box.

Discuss strategic importance of stalingrad war 1941 : Choose one of the following battles and discuss it's strategic importance as it pertains to the Second World War: France 1940, Stalingrad 1941, El Alamein 1942, Midway 1942, Normandy 1944

Categorized into productivity levels : An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker’s job.

Statistics in business assement : Statistics in Business Assement-Write a 300-word summary that addresses the following criteria:

Explain how these attitudes can affect your communication : What are the prevailing attitudes in your culture toward the following: Negotiating methods, Truth in advertising, Company-worker loyalty, Women's place in society, and the Protestant work ethic. Explain how these attitudes can affect your communi..

User Account

All Pages