Economics

posted by .

Show price elasticity of demand for Company XYZ’s product.
Using the following data:


Price Quantity
2000 5.00 100

2001 5.25 115

2002 5.50 150

2003 6.00 198



Calculate endpoint elasticity from 2000 to 2003 over the entire period.

Use the arc convention and the traditional percent change calculations.

Show work and compare results.

Finally, is this a typical situation?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Economics/Math

    This is an MBA-level Managerial Economics Course. I'm working on some HW and just want to double-check my answers. 1. Jimbo's is a new company producing exploding cigars. Jimbo's company has the following demand curve for the cigars: …
  2. managerial economics

    Explain the relationship between product X, product Y and product Z or the properties of each according to the following statements a. Cross price elasticity between X and Y is -4 b. Cross price elasticity between X and Y is 12 c. …
  3. managerial economics

    Exercise 1 The marketing manager has estimated the company’s demand curve with the equation P=3000 – 40Q. To develop a deeper understanding of pricing and quantity to be produced, complete the following analyses: 1. Draw the demand …
  4. managerial economics

    4. The equation for a demand curve has been estimated to be Q = 100 – 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50. a. Interpret the equation. b. What is price elasticity at P = 7 and …
  5. economics

    suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is $2.00. a)suppose P=$1.00, what is the price elasticity …
  6. Economics

    Hi, The demand for inflatable garden gnomes is given by P = 300 – 2Q, while the supply of is P= 100 + Q/2. How many garden gnomes are traded in equilibrium?
  7. Managerial Economic

    The equation for a demand curve has been estimate to be Q = 100 - 10P + 0.5Y, where Q is quantity, P is price, and Y is income. Assume that p = 7 Y = 50. a. Interpret the equation b.At a price of 7, what is price elasticity?
  8. Economics

    1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?
  9. Economics 201

    Determine the price elasticity of demand for a microwave that experienced a 20% drop in price and a 50% increase in weekly demand quantity. I know I have to use the price elasticity of demand formula, but I keep getting the wrong answer. …
  10. Managerial Economics

    Suppose you decide to produce a product and you discover it has a demand function given by; Q = 10P^-0.5Y^0.75 (I) calculate the price elasticity of demand for the product. (ii) calculate the income elasticity of demand.

More Similar Questions