Answered

Find detailed and accurate answers to your questions on IDNLearn.com. Ask your questions and receive comprehensive and trustworthy answers from our experienced community of professionals.

the table and graph below show the weekly demand for machine screws at the local hardware store. demand for machine screws price (dollars per pack) quantity (packs of 100 screws) $5.00 0 4.50 60 4.00 120 3.50 180 3.00 240 2.50 300 2.00 360 1.50 420 1.00 480 0.50 540 0.00 600 instructions: round your answers to two decimal places. if you are entering a negative number include a minus sign. a. using the midpoint method, what is the price elasticity of demand from a price of $5.00 to a price of $4.00 per pack of 100 screws? b. using the midpoint method, what is the price elasticity of demand from a price of $3.00 to a price of $2.00 per pack of 100 screws? c. using the midpoint method, what is the price elasticity of demand from a price of $1.50 to a price of $0.50 per pack of 100 screws? d. at which price is demand the most elastic? (click to select)

Sagot :

Varshamittal029idn

a.  9

b. 1

c. 0.25

d. (a)

To calculate Price elasticity of Demand we know,

Pe = percentage change in quantity/ Percentage change in price

Also

Percentage change in quantity Q = [Q2 - Q1 / (Q2+Q1)÷2] x100

Percentage change in price P = [P2 - P1/ (P2 + P1)÷2] x100

Now

a. Pe = 200/22.2 = 9

Q = [0-60/ (0+60)÷2] x100 = -200

P = [5-4/ (5+4)÷2] x100 = 22.2

b. Pe = 40/40 = 1

Q = [240-360/ (240+360)÷2] x100 = -40

P = [3-2/ (3+2)÷2] x100 = 40

c. Pe = 25/100 = 0.25

Q = [420-540/ (420+540)÷2] x100 = -25

P = [1.5-0.5/ (1.5+0.5)÷2] x100 = 100

d. (a) is most elastic because the percentage change in quantity is more than percentage change in price

What is Price Elasticity of Demand?

Price Elasticity of Demand is ratio between of change in quantity and change in price

More elastic

when a product or service's demanded quantity changes by a greater percentage than changes in price it is said to be elastic demand ( e>1)

To know more about Price Elasticity of Demand refer

https://brainly.com/question/5078326

#SPJ4

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.