« previous next »

Author Question: When the price of toothpaste increases by 15 percent, the quantity of toothpaste demanded falls by ... (Read 145 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?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo An intra-aortic balloon pump increases circulation to the coronary arteries and decreases the worklo
The first commercially successful typewriter, manufactured in quantity beginning in 1874, surely fue The first commercially successful typewriter, manufactured in quantity beginning in 1874, surely fue
Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ... Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ...
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 ...
Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ... Determine the mass percent of Fe3+ in a 0.546g sample of iron ore, if 22.40 mL of a 0.1000 M ...
A buffer solution is prepared using 0.5 moles of a weakly basic drug and an unknown quantity of ... A buffer solution is prepared using 0.5 moles of a weakly basic drug and an unknown quantity of ...
Video: Non-polar compounds - insolubility

For a complete list of videos, visit our video library