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

Author Question: In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what ... (Read 105 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
In early 2009 the price of computer memory chips rose. In a demand and supply model, shifts in what curve(s) could have brought about the higher price?
 
  What will be an ideal response?

Question 2

When the price of a movie ticket falls from 14 to 10, the quantity of tickets demanded increases from 500 to 700 a day. What is the price elasticity of demand for movie tickets? (Use the midpoint method.)
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nekcihc358

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

The higher price could have been brought about by an increase in demand, a decrease in supply, or the combination of an increase in demand combined with a decrease in supply. Hence the higher price could have been the result of a rightward shift in the demand curve, a leftward shift in the supply curve, or a combined rightward shift of the demand curve and leftward shift of the supply curve.

Answer to Question 2

The price elasticity of demand = (percentage change in the quantity demanded)  (percentage change in the price). Using the midpoint method to calculate the percentages, the percentage change in the quantity demanded = (700 - 500 )  (600 )  100 = 33.3 percent and the percentage change in the price is (10 - 14 )  (12 ) = -33.3 percent. We ignore the negative sign so that the price elasticity of demand equals (33.3 percent)  (33.3 percent), or 1.00.




tuffie

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


yeungji

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Gracias!

 

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?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

For a complete list of videos, visit our video library