Friday

March 6, 2015

March 6, 2015

Posted by **Mike** on Friday, October 16, 2009 at 11:45pm.

"Assume the price elasticity of demand for U.S. Frisbee. frisbees is -0.6. If the company increases the price of each frisbee from $6 to $8, the number of frisbees sold will:"

The answer is: Decrease by 17.1 percent

What I would like to know is how she got to this answer? I have been trying every formula I can think of and nothing is working.

Thanks!

Mike

- Economics -
**economyst**, Saturday, October 17, 2009 at 11:43amYour prof used the mid-point method for calculating percentage change.

Price changed by 2 from 6 to 8. Calculate the pct change from the mid-point. i.e., 2/7 = .2857

.2867 * 0.6 = .1714

QED

**Answer this Question**

**Related Questions**

economics - suppose the demand curve for a product is given by Q=10-2P+Ps1,where...

algebra - sally's print shop will print any image on a frisbee for a cost of $1....

Economics - The Own price elasticity of demand for good X is -2, its income ...

MATH - vIRGINIA THREW A fRISBEE FOR A DISTANCE OF 138.56 M TO CAPTURE THE WOMEN'...

physics - virginia threw a frisbee for a distance of 138.56m to capture the ...

Managerial Economics/Math - This is an MBA-level Managerial Economics Course. I'...

economics - 1. Suppose that as the price of Y falls from $3.00 to $1.00 the ...

managerial economics - 4. The equation for a demand curve has been estimated to ...

physics - A dog with a mass of 15kg jumps forward at 0.50m/s to catch a frisbee ...

Microecon - If you are given this function: P=1000-40Q where P=price and Q=sales...