Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 22, 2024

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

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Given Price elasticity of demand E 14 Initial price P1 100 Final price P2 95 Using the formula for p... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

More Books

Students also viewed these Economics questions

Question

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...

Answered: 1 week ago

Question

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...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

Lycan, Inc., has 7 percent coupon bonds on the market that have 9 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 8.4 percent, what...

Answered: 1 week ago

Question

★★★★★

Does earnings volatility necessarily imply risk? Explain. AppendixLO1

Answered: 1 week ago

Question

★★★★★

=+29. Health expenditures revisited. In Chapter 17, Exercise 46 we found a model for national Health Expenditures from an economic variable, Internet Users/100 people, and Primary Completion Rate. A...

Answered: 1 week ago

Question

★★★★★

Sara Collier, the bookkeeper for Danner, Cheney, and Howe, a political consulting firm, has recently completed an accounting course at her local college. One of the topics covered in the course was...

Answered: 1 week ago

Question

★★★★★

What type of measurement scale is used for display size?

Answered: 1 week ago

Question

★★★★★

Chapter 8 Interval Estimation Managerial Report 1. Use appropriate descriptive statistics to summarize each of the three variables for the 40 Gulf View condominiums. 2. Use appropriate descriptive...

Answered: 1 week ago

Question

★★★★★

3. The current through inductor is given by i = (sin 3t) In(5t2 + 1) Amp. If the inductance L = 7.5 H. Find the voltage across the inductor when t = 2seconds. (v = La) Answer: 15

Answered: 1 week ago

Question

★★★★★

2.) Suppose that X~ NB(4, 0.3), and Y = (X-3) 1/2. Determine the PMF of Y, (y). 3.) Suppose that X~ Exp(1/4) and Y = x - 2. Determine the PDF of Y, fy(y).

Answered: 1 week ago

Question

★★★★★

Let's consider that we have trained a word2vec model from scratch with a vocabulary size of 20,000, having 500 neurons in the hidden layer. What will be the size of the word embedding of each word?...

Answered: 1 week ago

Question

★★★★★

From the following Information for the month ending October, 2013, prepare Process Cost accounts for Process III. Use First-in-fist-out (FIFO) method to value equivalent production. Direct materials...

Answered: 1 week ago

Question

★★★★★

Why is the government responsible for long-term care? Or your parents or neighbors or friends LTC needs and costs? At the tune of $40,000 a year for a long-term care stay for skilled nursing who is...

Answered: 1 week ago

Question

★★★★★

The quality manager of a computer services company wants to create a specification for the amount of time it takes the company to respond to problems reported by customers. The goal time limits is 10...

Answered: 1 week ago

Question

★★★★★

Write two scanf statements to get input values into birthMonth and birthYear. Then write a statement to output the month, a slash, and the year. End with newline. Ex . If the input is 1 2 0 0 0 , the...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

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...

Answered: 1 week ago

Question

★★★★★

The United States wheat market is shown in Figure 17P-3. a. How many bushels of wheat should be allowed under an import quota in order to increase the world price from $4 to $5 per bushel? b. Graph...

Answered: 1 week ago

Question

★★★★★

State whether each of the following primarily causes an external cost or an external benefit. a. Fishing at a popular lakeside vacation spot. b. Buying a fax machine. c. Conducting research to find...

Answered: 1 week ago

Question

★★★★★

Suppose an environmental impact study shows that the coral reef near Port Douglas, Australia, can sustain 20 scuba diving tours per week. Discuss the pros and cons of setting a quota of 20 dive tours...

Answered: 1 week ago

Previous Question Next Question