Economics
posted by Mike .
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

Your prof used the midpoint method for calculating percentage change.
Price changed by 2 from 6 to 8. Calculate the pct change from the midpoint. i.e., 2/7 = .2857
.2867 * 0.6 = .1714
QED
Respond to this Question
Similar Questions

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? 
Managerial Economics/Math
This is an MBAlevel Managerial Economics Course. I'm working on some HW and just want to doublecheck my answers. 1. Jimbo's is a new company producing exploding cigars. Jimbo's company has the following demand curve for the cigars: … 
algebra
sally's print shop will print any image on a frisbee for a cost of $1.50 per frisbee and a onetime charge of $7. write an algebraic equation using c for cost and f for frisbees. 
Economics
The Own price elasticity of demand for good X is 2, its income elasticity is 3, its advertising elasticity is 4, and the crossprice elasticity of demand between it and good Y is 6. Determine how much the consumption of this good … 
economics
suppose the demand curve for a product is given by Q=102P+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 … 
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? 
math30
Childrenâ€™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 … 
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 … 
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? 
Economics
1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?