The price elasticity of demand is -1.4 and the price fell from $100 to $95. What...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The price elasticity of demand is -1.4 and the price fell from $100 to $95. What happened to the total revenue? (Hint: for small changes, the percentage change in revenue is approximately equal to the percentage change in quantity plus the percentage change in price) The price elasticity of demand is -1.4 and the price fell from $100 to $95. What happened to the total revenue? (Hint: for small changes, the percentage change in revenue is approximately equal to the percentage change in quantity plus the percentage change in price)
Expert Answer:
Answer rating: 100% (QA)
Given Price elasticity of demand E 14 Initial price P1 100 Final price P2 95 Using the formula for p... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
Simple charts that can be easily explained and highlight a single insight should be used for audiences that have __________. a. low comfort with analytics b. high comfort with analytics c. education...
-
An economic historian* reports that econometric studies indicate for the preCivil War period, 18201860, the price elasticity of demand for cotton from the American South was approximately 1. Due to...
-
If $4000 is deposited into an account paying 3% interest compounded annually and at the same time $2000 is deposited into an account paying 5% interest compounded annually, after how long will the...
-
In the table, find the Treasury bond that matures in May 2036. What is the asked price of this bond in dollars? If the bid-ask spread for this bond is .0628, what is the bid price in dollars? To...
-
Describe the types of furnace efficiency classifications.
-
A 10 -year, \(7 \%, \$ 1,000\) bond (cash interest payable \(3.5 \%\) semiannually) is sold to yield \(6 \%\) interest. Compute the bond selling price.
-
The following transactions relate to the City of Monticello for the fiscal year ended June 30, 2013. Prepare (a) All the journal entries necessary to record these transactions, and identify the fund(...
-
AllPlz Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic During the quarter ending June 30 , the company manufactured...
-
Saved According to Ricardo, what is the most important question an organization should ask? What are our most important values? Why do we exist? How do we do things better? How do we best motivate...
-
7.) (4 pts) Find the length of the parametric curve: x = =(4t+1), y=t, 1st5 (This integral must be done by hand showing all work to receive full credit.)
-
[The following information applies to the questions displayed below.] Hans runs a sole proprietorship. Hans has reported the following net 51231 gains and losses since he began business. Net $1231...
-
With the help of a diagram, explain the UNIX system components. ?
-
12. (12 pts) A 0.300M Lead nitrate, Pb(NO), solution is added to 25.00ml af a 0.500M KCl solution unit be more precipitate is formed. The unbalanced reaction is: Pb(NO3)2 (8) KCH()PbCl KNO + a. (3...
-
Davinci Manufacturing Co. has two production processes: Mixing and Canning departments. For the year 2020, Davinci budgeted total overhead of P4,965,000, of which P1,927,500 will be incurred in...
-
At the end of 2 0 1 0 Jarrett Corp. developed the following forecasts of net income: Forecasted Year Net Income 2 0 1 1 $ 2 0 , 8 5 6 2 0 1 2 $ 2 2 , 7 3 3 2 0 1 3 $ 2 4 , 5 5 2 2 0 1 4 $ 2 7 , 2 5 2...
-
Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...
-
Allies Apples, Inc. purchases apples in bulk and sells two products, boxes of apples and jugs of cider. Allies has capacity limitations of three kinds: warehouse space, crating facilities, and...
-
Four students, Art, Bob, Cal, and Dan, must be assigned rooms in a college dorm. The dean of housing would like to assign them in stable partnerships, so that no two students would prefer each other...
-
Suppose that the pumpkin market in Lake Witchisit is as we described it in the last problem except for one detail. Every spring, the snow thaws off of Carls pumpkin field a week before it thaws off...
-
Question: Under Indian custom, many families pay a staggering dowry when their daugh- ters marry. To avoid this burdensome debt, hundreds of thousands of pregnant women each year pay for an...
-
Question: Rap artist Ice-T and his band, Body Count, recorded a song called "Cop Killer," in which the singer gleefully anticipates slitting a policeman's throat. (The lyrics to this song are readily...
-
In the fall of 2008, the nation fell into its worst economic slump in a generation. The stock market lost half its value. Many companies cut salaries and laid off workers. The unemployment rate...
Study smarter with the SolutionInn App