The figure shows the demand for pens. Calculate the elasticity of demand when the price rises from

Question:

The figure shows the demand for pens.

Calculate the elasticity of demand when the price rises from $4 to $6 a pen. Over what price range is the demand for pens elastic?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

See More Books

Question Posted: Dec 15, 2015 06:59 AM

See More Questions

The figure shows the demand for DVD rentals. a. Calculate the elasticity of demand when the price of a DVD rental rises from $3 to $5. b. At what price is the elasticity of demand for DVD rentals...
The following figure shows the demand and supply of television sets in a city. Since TVs are considered normal goods, demand increases from D1 to D2 in response to an increase in the income level. a....
You saw in Chapter 5 that economists often use arc elasticity when they calculate the price elasticity of demand. Similarly, they often use arc elasticity when they calculate the elasticity of...
Read the article Problem at INSPEECH and answer the question: Why did Inspeech experience a meltdown in 1988?
A study published in Psychosomatic Medicine (Mar./Apr. 2001) explored the relationship between reported severity of pain and actual pain tolerance in 337 patients who suffer from chronic pain. Each...
Revenues are normally recognized when goods or services have been provided and payment or promise of payment has been received. Expense recognition is guided by an attempt to match the costs...
The data on January 1999 sanitation scores for 121 cruise ships, first presented in Exercise 2.58 (p. 74), are reproduced on page 225. Assess whether the sanitation scores are approximately normally...
The Short-Line Railroad is considering a $140,000 investment in either of two companies. The cash flows are as follows: a. Using the payback method, what will the decision be? b. Explain why the...
pls help me, thank you. China Bank granted a P1,000,000, 14% loan to ABC Co. on January 01, 2020. Interest payment is made every December 31, and the principal will be paid on December 31, 2023....
1. Why would the placement or removal of the job classifications in a bargaining unit have any impact on the quality of the job performed? 2. If the company knew that the tester "experiment" was not...
After you have studied Reading Between the Lines on pp. 9899, answer the following questions. a. Which demand is more price elastic and why: tomatoes in general or Florida winter tomatoes? b. When...
In 2003, when music downloading first took off, Universal Music slashed the average price of a CD from $21 to $15. The company expected the price cut to boost the quantity of CDs sold by 30 percent,...
The owner of the store from Exercise wants to know if the mean age of all customers is 25 years old. a) What is the null hypothesis? b) Is the alternative one- or two-sided? c) What is the value of...
1. What is a forward contract? 2. Why do you need fx swap ? 3. If the rate is usd to cad, then you multiple by the rate. If converting USD to CAD. If the rate is CAD to USD, then you have to divide...
1. Watch the video on Taylorism. Why do you think Frederick Taylor's ideas were important at that particular point in history, the early 1900s? Explain. 2. How were the Hawthorne studies a major...
what extent do elite networks shape policy and governance, and how transparent are these networks to public scrutiny ? Explain
What strategies do you employ to mediate conflicts within a team to ensure that disagreements are resolved constructively and synergistically?
What goal(s) do you think the communication was intended to achieve? What type of promotional communication is it and why? What do you believe to be the advertising theme or central idea of the...
Which statement is false? a) Nearly half of all poor Americans own their own homes. b) A poor person today has roughly the same standard of living as a middle-income person 30 years ago. c) The...
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
Risk-Adjusted Return. Should the anticipated internal rate of return (IRR) for a proposed foreign project be compared to (a) alternative home country proposals, (b) returns earned by local companies...
In Problem 11, a fire destroys some factories that produce gum and the quantity of gum supplied decreases by 40 million packs a week at each price, a. Explain what happens in the market for gum and...
Global food prices probably will rise in the first half of this century because of an expanding population and higher incomes and slower crop-yield growth. Explain the effect on food prices of a....
Oil prices shot up to US$103 a barrel as traders were forced to question how bad the Libyan situation would get and whether the instability could spread to other oil-rich nations. In Toronto, the gas...
Industry Current Year Minus 1 Current Year Minus 2 Company: Air Products and Chemicals, Inc. (APD) Stock Price: 306.72 USD Shares Outstanding: 220.89 M Financial Ratios Most Current Year Current...
Assume the market portfolio of common stocks earned 14.1 percent in one year while U.S. Treasury bills earned 4.4 percent and inflation averaged 4.6 percent. What was the market risk premium?
A bank quotes you an interest rate of 9 . 5 % per annum with quarterly compounding. What is the equivalent rate with continuous compounding?

The figure shows the demand for pens. Calculate the elasticity of demand when the price rises from

Question:

C 12 0 6 2 2040 60 80 100 120 rens per day

Step by Step Answer:

The price elasticity of demand is 072 When the price of a pen rises from 4 to 6 the quantity dema...View the full answer

Microeconomics

Students also viewed these Economics questions