What does the coefficient of elasticity indicate

Assignment Help Microeconomics

Reference no: EM133231638

Assignment:

Need help with this homework problem, what throws me off is using the appropriate formula and how to use it. Thanks in advance!

A number of retail stores in San Diego form a "District". In that district, a popular brand of lady's handbag was selling at $400.00 per bag. In one week, the combined sale in the district was 200. The District Manager then declared a sale of 25% on the handbags. As a result, sale of the handbags increased to 550 in the following week.

1. Calculate price elasticity of demand. (Use the following formula: Elasticity =(Change in quantity demanded/Average quantity)/(Change in price/Average price)

2. What does the coefficient of elasticity indicate? Explain your answer.

Reference no: EM133231638

Questions Cloud

What was carl claubergs : What was Carl Clauberg's, who was a German gynecologist, main project at the Auschwitz concentration camp, and what were the motivation for the project

What is the impact of this disease in the community : What is the impact of this disease in the community? Using an Epidemiologic triad or web of causation, explain the disease process

How to define cultural competence : How to define cultural competence? Describe why it is so important that counselors understand the essence of cultural competence, especially within the offender

What is his contribution and implications to society : what is his contribution and implications to society? How did this affect in present time? Elaborate and each one and explain

What does the coefficient of elasticity indicate : Calculate price elasticity of demand. (Use the following formula: Elasticity =(Change in quantity demanded/Average quantity)/(Change in price/Average price).

Is something still considered wickedness : Palm Beach Central High School, Is something still considered wickedness if someone causes unintentional harm to someone versus doing it intentionally

Briefly describe the results of your swot analysis : Briefly describe the results of your SWOT analysis. Formulate three goals you plan to accomplish as a result of completion of your DBA degree

Explain why natural monopoly is regulated : In your opinion, explain why natural monopoly is regulated and what are the effects of regulation.

How does the director use settings in caligari to suggest : How does the director use settings in Caligari to suggest to the audience a subjective point of view - Compare the silent acting style in Caligari and Potemkin

User Account

All Pages