Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00

Question:

Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:

1. Compute the price elasticity of demand for paint and show your calculations.

2. Decide whether the demand for paint is elastic, unitary elastic, or inelastic.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

An Introduction to Management Science Quantitative Approach to Decision Making

ISBN: 978-1337406529

15th edition

Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran

See More Books

Question Posted: May 12, 2012 06:09 AM

See More Questions

You are a painter and have an Internet store where you sell your paintings directly to the public. You would like customers to pay for their purchases with credit cards, and wish to ensure that these...
Suppose you are a derivatives trader specializing in creating customized commodity forward contracts for clients and then hedging your position with exchange-traded futures contracts. Your latest...
Suppose you are a perfectly competitive firm producing computer memory chips. Your production capacity is 1000 units per year. Your marginal cost is $10 per chip up to capacity. You have a fixed cost...
A marketing researcher wants to estimate the mean amount spent per year ($) on a web site by membership member shoppers. Suppose a random sample of 150 membership member shoppers who recently made a...
Coach, Inc.-the maker of handbags and other women's and men's accessories-was previously owned by Sara Lee Corporation until April 2001, when Coach was spun off as a separate company. Assume the...
Reese Castor, owner of Castor Corporation, is located at 1310 Garrick Way, Sun Valley, Arizona, 86029, phone number is 928-555-8842. The federal EIN is 20-1948348, and the state employer...
Define Youngs modulus of elasticity.
Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy-duty. The company uses a job-order...
You have been hired as a new accountant for Bake-Me-Some-Bread, Inc. They have asked you to calculate the company's Manufacturing Overhead Rate. You are given the following data from the accounting...
When the recession hit 2008, what advice would you have given Carl and Fran to increase the chances of survival for Iaccarino & Son?
How do we use correlation and covariance to manage the tradeoff between risk and return? Provide an example
Explain your reasoning and interpret your results.
Find the value of: sinh (1 + i), sin (1 + i)
Suppose that over two balance sheet dates there was an: Increase in Non-Cash assets $ 110 Increase in Liabilities 400 Increase in Equity 225 What was the change in Cash?
Assume the role of a senior manager or a director and discuss the responsibilities associated with addressing racial inequalities in the workplace for someone in a position of leadership. Taking a...
Discuss the application of kinetic isotope effects in elucidating reaction mechanisms and probing the nature of chemical bond-breaking and bond-forming processes, particularly in the context of...
Due to supply shortages of light weight material that is needed to produce its sports bicycles, the management of a German bicycle factory has to make a decision which product to focus on under these...
What type of costs are incurred when a customer places an order but the supplier runs out of inventory and then has to quickley buy an item and tush the delivery just to satisfy customer demand?
A transit concrete mixer truck gets stuck in traffic and arrives just after the maximum time allowed for fresh concrete. The project superintendent rejects the concrete, but the driver insists that...
Apply Jacobis method to the given system. Take the zero vector as the initial approximation and work with four-significant-digit accuracy until two successive iterates agree within 0.001 in each...
In Problems 1526, classify each as an example of the commutative property, the associative property, or both. (9 + 6)(s + +) = (6 + 9)( + +)
Distinguish between narrow and wide span of control. Give an example of tasks appropriate to each type.
How does management by exception help to alleviate information overload by a manager?
Contrast the four decision typesstrategic planning, tactical planning, management control, and operational controlby the five decision characteristicstime frame, scope, level of details, recurrence,...
= 1 and we i) Consider the function h(x) =x sin(x). We seek to find where h(x) will do so by using the bisection method to find the root of f(x) = h(x) 1. Use the intermediate value theorem to argue...
A major sports league, comprised of 200 players, reported a loss of $580 million this year. The sports league has yearly fixed costs of $700 million. The league is considering shutting down for the...
Use the one-period model to explain why a tax on capital is not a good idea. Determine the effects of capital tax on aggregate output, consumption, employment, and the real wage. Please use diagrams...

Details: Suppose you are a painter, and the price of a gallon of paint increases from $3.00

Question:

Step by Step Answer:

Computation of the price elasticity of demand ...View the full answer

An Introduction to Management Science Quantitative Approach to Decision Making

Students also viewed these Economics questions