This topic contains a solution. Click here to go to the answer

Author Question: The price of cabbage rises from 0.20 per pound to 0.30 per pound. The quantity of cabbage demanded ... (Read 183 times)

craiczarry

  • Hero Member
  • *****
  • Posts: 527
The price of cabbage rises from 0.20 per pound to 0.30 per pound. The quantity of cabbage demanded falls from 800 pounds per week to 600 pounds per week. Use the midpoint formula to calculate the price elasticity of demand for cabbage.
 
  Is the demand elastic, inelastic, or unit elastic?

Question 2

When your budget line is just tangent to your indifference curve, you are at the point on the budget line that you least prefer.
 
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

livaneabi

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

percentage change in quantity demanded = 600  800/700 = -200/700 = -28.6
percentage change in price = 0.30 - 0.20/0.15 = 0.10/0.15 = 66.7
price elasticity of demand = -28.6/66.7 = -0.43

Since the absolute value of the price elasticity of demand is less than one, the demand is inelastic.

Answer to Question 2

FALSE




craiczarry

  • Member
  • Posts: 527
Reply 2 on: Jun 29, 2018
Wow, this really help


Kedrick2014

  • Member
  • Posts: 359
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

For a complete list of videos, visit our video library