What will be the elasticity as per midpoint formula if price changes from 90 to 50 and quantity increases from 300 to 400.

Booster class

Microeconomics

Skill

Define and Calculate Different Types of Elasticity

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Paramjeet ChawlaLv8

29 Oct 2020

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Related questions

Using the midpoint formula for calculating the elasticity of demand if the price of the good falls from $42 to $38, what would be the elasticity of demand if the quantity demanded changes from:

A. 19 to 21

B. 27 to 33

C. 195 to 205

purplegnat968

1. What is price elasticity of demand when prices increase from $3 to $4 and quantity decrease from 90 cups to 70 cups?

2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

Price	Quantity Demanded by Business	Quantity Demanded by Vacationers
150	2100	1000
200	2000	800
250	1900	600
300	1800	400

As the price of tickets rises from $200 To $250, what is the price elasticity of demand for a) business travelers and b) vacationers? Use the midpoint method to calculate. Why might vacationers have a diffeent elasticity from business travelers?

3. How can sellers utilize the price elasticity of demand for maximum total revenue?

graybutterfly69

Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Then the price elasticity of demand is (based on the midpoint formula):

a) 4.0.

b) 2.1.

c) 3.9.

d) 1.4.