Utilizing the midpoint formula, what is the price elasticity

Assignment Help Business Economics
Reference no: EM1360992

Coca-Cola in dispensers located on a golf course sells for $1.25 a can, and golfers buy 1,000 cans. Assume the course raises the price to $1.26 (assume a penny raise is possible) and sales fall to 992 cans.

a. Utilizing the midpoint formula, what is the price elasticity of demand for Coke at these prices?

b. Assume the demand for Coke is a linear line. Would the elasticity of demand be elastic or inelastic at 75 cents a can?

c. At $2.00 a can?

Reference no: EM1360992

Questions Cloud

Explain what are the challenges faced by extractive mining : Explain What are the challenges faced by extractive mining corporations in their attempt to establish subsidiary operations in developing nations?
Nursing experience and incidences : Looking back on your nursing experience, discuss incidences when changing role functions impacted client care.
How high is the top of the ski lift relative to the base : How high is the top of the ski lift relative to base.
Explain what is creative thinking : What are some misconceptions about creative thinking? How would you go about explaining creative thinking to someone who is strongly influenced by those misconceptions?
Utilizing the midpoint formula, what is the price elasticity : Utilizing the midpoint formula, what is the price elasticity of demand for Coke at these prices. Assume the demand for Coke is a linear line. Would the elasticity of demand be elastic or inelastic at 75 cents a can.
Determine contribution margin and projected profit : Susan Young is an attorney for a small law company in Arizona. She is also a part-time inventor and an avid golfer. One day Susan's golf foursome included a man named Henry Jones, a manufacturer of Christmas jewelry.
Significant difference of typical salary for system analyst : Is there a significant difference between typical salaries for system analyst, designers, and developers? What is the difference between typical salaries for these different groups?
What is the mass of this volume of water : A 186 watt motor is used to lift a 114kg container to a height of 6m. How much time does it take to lift the container with the motor.
Consequences of avoiding stress management : What are the consequences of avoiding stress management? Consider all six dimensions of wellness.

Reviews

Write a Review

Business Economics Questions & Answers

  Nations gdp

Exportof goods and services to foreigners is $1 million and import of goods and services from foreigners is $1.5 million.

  Elucidate its consumption and government expenditures

The country of Meditor uses the merit as its currency. What were its consumption and government expenditures on goods and services.

  Proactive motorola have done dissimilarly

Illustrate what might a more proactive Motorola have done dissimilarly had it correctly perceived the steps its rival Nokia would take.

  Characteristics of proprietorships

Characteristics of Proprietorships what percentage of sole proprietorships is engaged in retail trade? Why might more sole proprietorships be engaged in services rather than manufacturing?

  Discuss the probability that the annual net cash flows

The distribution of annual net cash flows is approximately normal. Determine the probablity that the annual net cash flows will be negative. Discuss the probability that the annual net cash flows will be less than $20,000

  Dominant firms derived-demand function

Find the equation of the dominant firm's derived-demand function

  Technological change leads to the development

A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.

  Explain how will the level of the velocity of money change

Explain how will the level of the velocity of money change if there is a permanent (one time) increase in the nominal interest rate, holding other factors constant.

  What the equilibrium interest rates for the federal funds

Elucidate what the equilibrium interest rates for the federal funds rate the government bond rate also the private bond rate are also Illustrate what the equilibrium level of income is.

  Marginal revenue functions

Write the total and marginal revenue functions.

  Information in deciding to open a store

You used this information in deciding to open a store. Your store Explain however has not come even close to these annual sales.

  Utility function for wealth

Now suppose your utility functioin is U= (square root)Wealth. What is the maximum you will pay for the bike check-in now.

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