Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Point and Arc Elasticities

The demand function for a cola-type soft drink in general is Q = 20 - 2P, where Q stands for quantity and P stands for price.

a. find out point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points?

b. find out arc elasticity at the interval between P = 5 and P = 6.

c. At which price would a change in price and quantity result in approximately no change in total revenue? Why?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M926015

Have any Question? 


Related Questions in Business Economics

In an article titled gas prices dropping after last weeks

In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011, Mike Morris wrote: "After a spike last week as Hurricane Irene threa ...

Consider the production functiony akalphal betawhere y

Consider the production function Y = AKαL β where Y represents output, K and L represent the inputs of capital and labor, and A is total factor productivity. The coefficients α and β are positive. a. Show that this produ ...

A explain how marginal control costs are equalised across

a) Explain how marginal control costs are equalised across firms under a transferable pollution permit system (also known as an emissions trading scheme) using a diagram to illustrate your answer. b) What advantage does ...

A firm in a purely competitive industry is currently

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, it ...

Discuss the industrial expansion of the late 19th century

Discuss the industrial expansion of the late 19th century identifying the ways it developed within corporate organizations and how workers responded to these changes both outside of and within labor organizations.

Proper hygiene such as regular hand washing can greatly

Proper hygiene such as regular hand washing can greatly limit the spread of many diseases. How may this suggest a role for public interventions? What kinds of interventions may be possible? Suggest three distinct types o ...

There are several variables that combine to establish a

There are several variables that combine to establish a successful, sustainable team. Identifying the key components becomes especially challenging when the members are operating virtually. Identify potential barriers to ...

As the drivers of globalization continue to pressure both

As the drivers of globalization continue to pressure both the globalization of markets and the globalization of production, we continue to see the impact of greater globalization on worldwide trade patterns. HSBC, a larg ...

Dream businessplease respond to the followingbulldiscuss

Dream Business Please respond to the following: • Discuss the most innovative idea you can dream up for a new business. Explain why you think it would be successful. • Discuss the major challenges you would face in runni ...

1 explain what is meant by david packards quote marketing

1) Explain what is meant by David Packard's quote "Marketing is far too important to leave to the marketing department" 2) Explain the role of SWOT analysis in determining a firm's objectives or goals.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate