The current price of canvas messenger bags is $36 each and sales of the bags equal 400 per week. If the price elasticity of demand is -2.5 and the price changes to $44, how many messenger bags will be sold per week? Use the midpoint formula
What will be an ideal response?
Using the midpoint formula: -2.5 = (400 - X) / [(X + 400 ) / 2] / (36 - 44 ) / [(36 + 44 )/2]
-2.5 × -0.2 = (400 - X) / [(X +
You might also like to view...
The primary goal of an agricultural extension service is to
(a) bring new areas under cultivation. (b) increase the yield per hectare. (c) introduce land reform. (d) assist rural-urban migration.
Drawbacks of the federal government budget process include: a. the use of continuing resolutions that reward last year's programs without adequate review of performance. b. Congress having too much control over the budget
c. a short review period for Congress that results in poor choices in funding programs. d. Congress having to approve a budget with at least a two-thirds majority vote. e. the President having too much power to cancel any proposed expenditure without the possibility of a Congressional override.