Economics

posted by .

Here is a question that my professor posted...

"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 -

    Your 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

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. physics

    virginia threw a frisbee for a distance of 138.56m to capture the womans recrod. If the frisbee was thrown horizontally with a speed of 13.0 m/s, how long did the frisbee remain aloft?
  2. 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: …
  3. algebra

    sally's print shop will print any image on a frisbee for a cost of $1.50 per frisbee and a one-time charge of $7. write an algebraic equation using c for cost and f for frisbees.
  4. Economics

    The Own price elasticity of demand for good X is -2, its income elasticity is 3, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -6. Determine how much the consumption of this good …
  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

    1. Suppose that as the price of Y falls from $3.00 to $1.00 the quantity of Y demanded increases from 10 to 18. Compute the price elasticity of demand. Is the demand elastic or inelastic?
  7. math30

    Children’s meals are being prepared for a large gathering. There is an equal number of chicken, hamburger, and fish meals. Each meal comes with a toy: a ball, a parachute toy, or a Frisbee. There are twice as many balls as Frisbees …
  8. Economics

    We're looking at the market for cat food. When the price is $10, the quantity sold is 1000 bags. When the price drops 10%, the quantity sold increases 30%. Calculate the price elasticity of demand. (Answer in format X.XX, round to …
  9. MATH

    vIRGINIA THREW A fRISBEE FOR A DISTANCE OF 138.56 M TO CAPTURE THE WOMEN'S RECORD. IF THE FRISBEE WAS THROWN HORIZONTALLY WITH A SPEED OF 13.0M/S HOW LON DID THE FRISBEE REMAIN ALOFT?
  10. Economics

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

More Similar Questions