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 97 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
Excellent

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

How to calculate present value (Question 4) How to calculate present value (Question 4)
How to calculate simple interest (Part 4; P = I/rt) How to calculate simple interest (Part 4; P = I/rt)
How to calculate simple interest (Part 5; r = I/Pt) How to calculate simple interest (Part 5; r = I/Pt)
Who's Policing the Food Supply? Who's Policing the Food Supply?
Calculate the magnitude and direction of the resultant for Calculate the magnitude and direction of the resultant for
Calculate the net field at the location of q 3 Calculate the net field at the location of q 3
Video: Subunits of DNA And Semi Conservative Replication

For a complete list of videos, visit our video library