ECO 204 Week 1 Assignment Demand Elasticity

Apr 16th, 2015
Studypool Tutor
Ashford University
Price: $15 USD

Tutor description

Word Count: 289
Showing Page: 1/4
Demand elasticityPrinciples of MicroeconomicsECO204Price Elasticity of Demand is defined as: PointsShoe Sales per WeekPrice per Pair ($)070A10060B20050C30040D40030E50020F60010a) Calculate demand elasticity using the midpoint formula between points A & B, between points C & D, and between points E & F. 1) Between points A & B:Sales % between A and B200-100=100200+100=3002= 150100150= 0.667Price % between A and B50-60=-1050+60=1102=55-1055=-0.1818Answer: 0.667-0.1818= -3.72) Between points C & D:Sales % between C and D400-300=100400+300=7002= 350100350= 0.286Price % between C and D30-40=1030+40=702=351035= 0.286Answer: 0.286-0.286= 1.03) Between points E & F:Sales % between E and F600-500=100600+500=11002= 550100550= 0.1818Price % between E and F10-20=-1010+20=302=151015=-0.667Answer: 0.1818-0.667= 0.27b) If the store currently charges a price of $50, then increase that price to $60, what happens to total revenue from shoe sales. Repeat the exercise for initial prices decreasing to $40 and $20 respectively. If the store increases the price from 50 to 60, total r

Review from student

Studypool Student
" Goes above and beyond expectations ! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1830 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors