Suppose that the price elasticity of demand for snow shovels is –1.2 . What would have to happen to the price of a snow shovel for the quantity demanded to fall from 2,000 to 1,800? Use the midpoint formula in your calculations
What will be an ideal response?
percentage change in quantity demanded = [1,800 – 2,000]/[1,900] = -200/1,900
= -10.5.
[-10.5]/[percentage change in price] = -1.2
Therefore, the price of snow shovels must rise by 8.75 percent.
Economics
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Cindy's Sweaters' production function is shown in the above table. Cindy rents two knitting machines for $30 a day each and hires workers at a wage rate of $40 a day. If Cindy produces 18 sweaters per day, what is her total cost?
A) $120 B) $140 C) $180 D) $60
Economics
All of the following are included in M1 EXCEPT
A) coin and currency. B) money market mutual fund shares. C) traveler's checks. D) checking account balances.
Economics