This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Calculate the elasticity of demand when an increase in supply causes the equilibrium price and ... (Read 50 times)

Alygatorr01285

  • Hero Member
  • *****
  • Posts: 564
on: Jun 30, 2018
Calculate the elasticity of demand when an increase in supply causes the equilibrium price and quantity to change from 9 and 2,000 to 7 and 3,000, respectively.

Question 2

Which of the following is true about the equation of exchange?
 a. The equation of exchange can be presented as: M V = P Q.
 b. Velocity represents the average number of times that a dollar is used in purchasing final goods or services in a one-year period.
  c. If M increases, and V remains constant, then P must rise and/or Q must rise.
 d. All of the above are true about the equation of exchange.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

durant1234

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

Elasticity of demand = Percentage change in quantity demanded/Percentage change in price. Using the average quantities and average prices to calculate elasticity, we obtain an elasticity of 5/3, or 1.66.

Answer to Question 2

d


Alygatorr01285

  • Member
  • Posts: 564
Reply 2 on: Jun 30, 2018
:D TYSM

tuate

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Analogy for How Magnetic Field Strengths Increase Analogy for How Magnetic Field Strengths Increase
Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
Enterohepatic recirculation of a drug can increase its half-life in the body and prolong its ... Enterohepatic recirculation of a drug can increase its half-life in the body and prolong its ...
Calculate the distance from point R(17,5) to the line ... Round to the nearest tenth of a Calculate the distance from point R(17,5) to the line ... Round to the nearest tenth of a
Calculate the magnitude and direction of the resultant for Calculate the magnitude and direction of the resultant for
What is the value of the equilibrium constant, K, at 25°C for the reaction? What is the value of the equilibrium constant, K, at 25°C for the reaction?
Video: Glomerubular filtrate rate -pressures that affect GFR and net filtration pressure

For a complete list of videos, visit our video library