« previous next »

Author Question: When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by ... (Read 147 times)

torybrooks

  • Hero Member
  • *****
  • Posts: 500
on: Jun 29, 2018
When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by 30 percent. Calculate the price elasticity of demand. Is the demand for toothpaste elastic, inelastic, or unit elastic?
 
  What will be an ideal response?

Question 2

In the above figure, if the natural monopoly is not regulated then consumer surplus is
 
  A) 48 million.
  B) 60 million.
  C) 108 million.
  D) 192 million.


cloud

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

Price elasticity of demand = -30/15 = -2 . Since the absolute value of the price elasticity is greater than one, the demand for toothpaste is elastic.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
Independent assortment produces 50 percent recombinants Independent assortment produces 50 percent recombinants
Dose-response relationship. As the dose of a drug increases, a maximal response or plateau is ... Dose-response relationship. As the dose of a drug increases, a maximal response or plateau is ...
How to convert percent to decimals to fractions How to convert percent to decimals to fractions
How to solve any percent efficiency problem How to solve any percent efficiency problem
Polyploidy increases fruit size Polyploidy increases fruit size
Video: Atrophy

For a complete list of videos, visit our video library