Economics

1.calculate the price elasticity of demand when the price was increased from R25 to R40 ? (10)
2.is a price increase the correct decision to raise revenue?substantiate your answer using the price elasticity of demand and income elasticity of demand concepts? (30)
3.using examples explain how demand,price elasticity,and total revenue are all related to each other.explain this relationship using at least two examples that incorporates all three concepts? (30)
4.evaluate the various factors that affect the price elasticity of demand?justify your answer (30)

  1. 👍 0
  2. 👎 0
  3. 👁 156
  1. All of them

    1. 👍 0
    2. 👎 0
    posted by Shaun
  2. plants

    1. 👍 0
    2. 👎 0
    posted by science
  3. The answer of number one is 1.25

    1. 👍 0
    2. 👎 0
    posted by emmanuel
  4. (Q2-Q1\Q2+Q1)\(P2-P1\P2+P1)

    1. 👍 0
    2. 👎 0
  5. 25000-100000÷100000×100=75000÷100000×100=75%.45-25÷25×100=15÷25×100=1500÷25=60%.75÷60=5÷4=1,25

    1. 👍 0
    2. 👎 0
  6. Then number of substitute availabe.the proportion of income that is spent on goods.

    1. 👍 0
    2. 👎 0
    posted by puleng

Respond to this Question

First Name

Your Response

Similar Questions

  1. economics

    Calculate the price elasticity of demand when the price was increased from R25 to R40.

    asked by marry-ann on April 28, 2016
  2. Economics

    The demand function for two commodities A and B in a market are given as follows. QA=96-2PA-3PB, QB=30-25PA+0.32Y. Where PA and PB are prices of commodity A and B respectively, and Y is consumers average money income, given PA=#2,

    asked by CUPSON on April 28, 2019
  3. Economics

    d. Use the midpoint method to calculate the price elasticity of demand from $25 to $30. Explain whether demand is price elastic or price inelastic and interpret the value of this elasticity. (4 marks)

    asked by Fidelis on April 16, 2019
  4. Business Math

    3.) The demand equation for a certain product is q=500-40p+p^2 here p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15

    asked by pypski on December 15, 2016
  5. Microecon

    If you are given this function: P=1000-40Q where P=price and Q=sales..... How do you get the price elasticity of demand at a price that is $500? At what price, if any is the price elasticity of demand equal to one?

    asked by Dave on January 23, 2008
  6. 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

    asked by Kiki on October 28, 2017
  7. Business Math

    3.) The demand equation for a certain product is q=500-40p+p^2 where p is the price per unit (in dollars) and q is the quantity of units demanded (in thousands). Find the point elasticity of demand when p = 15. If this price of 15

    asked by pypski on December 14, 2016
  8. Advanced Microeconomics College Level

    Information on the price elasticity of demand is particularly importatn to managerial decision making because: A) the higher the price elasticity of demand for a product is, the more profitable it will be to produce more of it. B)

    asked by Kathy on July 9, 2011
  9. 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

    asked by arep on April 2, 2012
  10. microeconomics

    For each of the following scenarios, decide whether you agree or disagree and explain your answer. a. If the elasticity of demand for cocaine is −.2 and the Drug Enforcement Administration succeeds in reducing supply

    asked by mimi on August 14, 2010

More Similar Questions