When the price of an item was raised from $12 to $18, the quantity supplied increased from 800 to 1,200 per month. The price elasticity of supply is (Round to two decimal places and use the midpoint formula.) Supply is

When the price of an item was raised from $12 to $18, the quantity supplied increased from 800 to 1,200 per month. The price elasticity of supply is (Round to two decimal places and use the midpoint formula.) Supply is

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 24SQ: Suppose that when price is 10, quantity supplied is 20 units, and when the price is 6, the quantity...

See similar textbooks

Related questions

Q: Suppose the demand for chocolate bars is downward sloping. Which of the following will occur as a…

A: Downward sloping demand curve implies the inverse relationship between price and quantity demanded.

Q: Nominal Average Hourly Year Earnings $10 2018 2019 10 2020 12 Looking at the table, what is the…

A: Average hourly earnings (AHE) is a significant mark of work cost expansion and of the snugness of…

Q: Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 10,…

Q: endy decides to open her own business and earns 70,000 in accounting profit the first year. When…

A: The measure that depicts expenses that are incurred by a business for carrying out its day-to-day…

Q: 2. If it takes 116.57 yen to buy one dollar, it takes $.0085785 to buy one yen.

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 4. Assume that a monopolist sells a product with the cost function CF + 20Q, where C is total cost,…

A: In economics, an inverse demand function is the inverse function of a demand function. The inverse…

Q: Economics Complete the table below. (Round your answers to two decimal places.) Capital, Labor, K L…

A: Fixed cost remains same at all levels of output. Variable cost is the cost that changes as output…

Q: Question 2. a. What does stagflation mean? b. When does stagflation occur? Use AD-AS diagram. c. How…

A: a)Stagflation is defined by weak economic development and relatively high unemployment, often known…

Q: advantage can also be The comparative demonstrated with agents rather than countries. Let's say that…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: Elasticity of supply depicts how much consumer responds with the change in the price level.

Q: Suppose the Republic of Newbee fixes the value of its currency, the Nam, to the dollar. In the U.S.,…

A: A government's or central bank's stabilisation policy aims to ensure a healthy rate of economic…

Q: Refer to the figure above. If Good Z is an inferior good and consumers' incomes decrease at the same…

A: Given Good Z is inferior good. A good is inferior when its demand decreases as the income…

Q: The following graph shows the domestic supply of and demand for wheat in Kenya. The world price (w)…

A: International Trade occurs when goods and services are transported over country borders for sale in…

Q: Qd=60-40P+2I-30Py where: Qd is the quantity demanded of Good X P is the price of Good X I is…

A: A)

Q: a.) The money supply is $6000 000, currency held by the public is $2 000 000, and the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Part 8 a) What is average labour productivity? Explain how average labour productivity can impact…

A: Average Labor Productivity = Total Output/Total Productive Hours. The worth each utilized individual…

Q: The following diagram shows the market demand for titanium. Use the orange points (square symbol) to…

A: Supply Curve is the curve that denotes the different levels of quantity that a producer is willing…

Q: Suppose that the production function is V=5 With this production function, the marginal product of…

A: production function, in economics, equation that expresses the relationship between the quantities…

Q: Answer the following question.. "The Consumer Price Index increased by 4.2 percent in the first…

A: The statement shows that the consumer price index is increased by 4.2 percent. Consumer Price index…

Q: Q1. If fixed cost (FC) is $50, variable cost (VC) is $100, and output (quantity) is 3, what is…

A: Q1) TC = TFC +TVC. = 100+50 =150 ATC = TC/Q = 150/3 = 50

Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…

A: We have given (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…

Q: Which of the following is an example of technology as the responsible determinant of productivity in…

A: Productivity of labor is the output that is obtained by per unit use of labor. Every nation focused…

Q: The market demand for a type of carpet has been estimated as P= 75 – 1.5Q Where P is price…

A: Given, Market demand= P= 75 – 1.5Q Market Supply= P= 25 + 0.5 Q Cost of Production= MC= 2.5 + 10q

Q: The main reason why antiques have a high price is because: Select one: His demand is perfectly…

A: The current status of the existing price of antiques must be analyzed before evaluating the…

Q: What are the types of fiscal policy and when or in what economic situation it is applicable?

A: Fiscal policy: It refers to the arrangement depending on the hypotheses of British financial analyst…

Q: Assume that the labour market for mechanics is competitive and that it is differentiated into two…

A: The labor market is the dwelling where the supply and the demand for jobs meet, with the labor or…

Q: What if the information regarding market demand and market supply is conveyed in equations rather…

A: Using equations : Demand : P=10-Q Supply : P=Q At equilibrium, Demand= Supply 10-Q=Q 2Q=10 Q=5…

Q: 1. The principal function of the foreign exchange market is the transfer of funds, thus purchasing…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: Which of the following theories explains why better-educated workers are paid more than…

A: The theory that explains that why better-educated workers are paid more than less-educated workers…

Q: What can we say about the wage difference between jobs that require education and those that do not?…

A: The costs that are being paid by an employer to an employee for carrying out the work assigned to…

Q: In 2014, the United States' balance-of-trade deficit with China was about 10 times as large as the…

A: When talking about IS trade relationship with other countries, it can be said that Has has some…

Q: Given the production function Y=A(K,L,N,H), what is the role of money in generating long run growth…

Q: The demand and supply curves for instant oatmeal are as follows: Qa = 100.5Pd, where Qa is the…

A: Equilibrium in the competitive market is achieved where demand equals supply

Q: What is the inflation free (real interest rate) if the market rate is 12.6% and the inflation rate…

A: The interest rate which is calculated without taking in account the value of inflation is known as…

Q: The marginal product of labor for a firm is given by: MPL = 112 - 3H, where H is the number of hours…

A: When all other production factors are held constant, a company's marginal product of labour (or MPL)…

Q: 1. Consider a production function of corn in sales with two inputs defined by ƒ(x₁, x₂) = 2/3 1/3 X1…

A: Production is maximised at a level where marginal rate of technical substitution equals the price…

Q: Explain the differentiation and positioning in terms of the relationship between the price and…

A: Price is gradually known to be as the value of the money that has to be merely paid for acquiring a…

Q: Q4: The supply and demand functions for complementary goods (pitch and putt) are given by the…

A: Equilibrium is achieved at the intersection of demand and supply curves, where quantity demanded…

Q: Price Quantity Demanded Quantity Supplied $1 40 18 $2 35 22 $3 30 30 $4 25 40 $5 20 44 According to…

A: Merely in the simple words we can say that the equilibrium quantity is denoted to be as the quantity…

Q: Describe three factors that will cause the banking system not to be able to reach the potential…

A: The multiplier effect is usually denoted as the amount of the decrease or the increase in the…

Q: you deposit $50,000 into the bank. Assume that the bank loans out the maximum amount it can, and…

A: The reserved is minimum amount of deposit which is kept by the bank to cushion against problem of…

Q: Measures of Cost for Charlie's Chocolate Factory Quantity (Boxes of Chocolates) Variable Costs Total…

A: Total cost is a sum of fixed cost and variable cost.

Q: Question 23 Private markets fail to account for externalities because O externalities don't occur in…

A: When there is externality, it leads to spillover costs and benefits to third party who is not…

Q: In Canada, in the majority of cases where there is a natural monopoly, how does the government…

A: Monopoly A monopoly is a form of market where there is only a single seller in the market. A…

Q: Global warming is likely to increase Question 28 options: the frequency of hurricanes…

A: The greenhouse effect induced by higher amounts of carbon dioxide, CFCs, as well as other pollutants…

Q: Short Answer) A new office building is expected to produce the initial net operating income (NOI) of…

A: The ability for investors to compare values over time makes present value crucial.iGiven a certain…

Q: Question 1 20 Output (units per day) 15 10 5 U 9 TP b a 0 1 2 3 4 5 6 Labor (workers per day) In the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: As a country accumulates additional units of capial stock it will experience ever decreasing gains…

A: Productivity gains is the increase in output from employing additional units of input

Q: Find the present worth of cash flows of $1000 that start now (time 0) and continue through year 10,…

A: Given the information: Cash flow = $1000 n = 10 years interest rate, r = 10%

Q: J 7 Though many MNCs espouse and follow rigid codes of social responsibility in their home countries…

A: Corporate codes of conduct are individual corporate policy declarations that outline a corporation's…

Question

When the price of an item was raised from $12 to $18, the quantity supplied increased from 800 to 1,200 per month.
The price elasticity of supply is
(Round to two decimal places and use the midpoint formula.)
Supply is

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose a movie theater raises the price of popcorn 10 percent, but customers do not buy any less popcorn. What does this tell you about the price elasticity of demand? What will happen to total revenue as a result of the price increase?
Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price for wheat and a price 2 higher per bushel. Do you think that farmers collectively would try to reduce the supply of wheat and drive the price up 2 higher per bushel? Explain your answer. Assuming that they would try to reduce supply, what problems might they have in actually doing so?
On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the price and quantity demanded are 6 and 150 units, respectively. What is the price elasticity of demand between the 7 and 6 prices?
Prove that price elasticity of demand is not the same as the slope of a demand curve.
If the midpoint on a straight-line demand curve is at a price of $7, what can we say about the elasticity of demand for a price change from $12 to $10? What about from $6 to $4?
The price elasticity of demand for personal computers is estimated to be 2.2. If the price of personal computers declines by 20 percent, what will be the expected percentage increase in the quantity of computers sold?
For each of the following, identify where demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic: a. Price rises by 10 percent, and quantity demanded falls by 2 percent. b. Price falls by 5 percent, and quantity demanded rises by 4 percent. c. Price falls by 6 percent, and quantity demanded does not change. d. Price rises by 2 percent, and quantity demanded falls by 1 percent.
(Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of Si per unit. A reduction in price to $0.20 results in an increase in quantity demanded to 70 units. Using the midpoint formula, show that these data yield a price elasticity of 0.25. By what percentage would a 10 percent rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve?