A study of the consumption of beverages in Chile found that for soda a price increase of
Question:
A study of the consumption of beverages in Chile found that for soda “a price increase of 10% is associated with a reduction in consumption of 13.7%.” Given this information, calculate the price elasticity of demand for soda in Chile. Is demand price elastic or price inelastic? Briefly explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
To calculate the price elasticity of demand PED for soda in Chile you can use the following formula ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
A study of the consumption of beverages in Mexico found that overall, for soft drinks a 10% price increase decreases the quantity consumed by 10.6%. Given this information, calculate the price...
-
A study of consumers in Chile found that the cross-price elasticity of demand between soda and milk was 0.25, while the cross-price elasticity of demand between soda and candy and other sweet snacks...
-
Homework-2 DECISION ANALYSIS PROBLEMS Problem-1: Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by...
-
You have three light bulbs; bulb A has a resistance of 240 , bulb B has a resistance of 192 , and bulb C has a resistance of 144 . Each of these bulbs is used for the same amount of time in a setup...
-
Fibre Technologies manufactures fiberglass housings for portable generators. One part of a housing is a metal latch. Currently, the company produces the 120,000 metal latch units required annually....
-
A pair of electrons is fixed at certain positions \(\left(e_{1} ight.\) at the origin while \(e_{2}\) is at point \(a\) ) and carries an electric potential energy of \(4.8 \times 10^{-5}...
-
Find and watch videos of three different MVS applications on YouTube or other video-sharing sites. To help you get started, try a couple of the search phrases are listed below. Simply go to YouTube...
-
Consider the following note payable transactions of Tube Video Productions. 2014 Mar 1 Purchased equipment costing $80,000 by issuing an eight-year, 12% note payable. The note requires annual...
-
Reference: https://annas-archive.org/slow_download/8fe4de22412036999d259570a74bc2e8/0/0#:~:text=URL%20to%20download%3A-,download%20now.,-%F0%9F%9A%80%20To%20get%20faster "Download now." Much has been...
-
Use the midpoint formula for calculating elasticity to calculate the price elasticity of supply between point A and point B for each panel of Figure 6.6. Data given in Figure 6.6 Price (dollars per...
-
According to an article on espn.com, when the Atlanta Falcons football team moved into a new stadium, the team changed its strategy of pricing concessions: The Falcons lowered prices on food and...
-
The accompanying sketch is that of a closed-end manometer. Describe how the gas pressure is measured. Why is a measurement of P bar. not necessary when using this manometer? Explain why the...
-
Refer to 3-24. Jaimes business policy is to plan to end each month with an ending inventory equal to 20 per cent of the next months projected sales. Jaimes pays $8 for each hat that it purchases....
-
Wivenhoe Wines is based in the Brisbane Valley and makes boutique wines sold online to customers on credit (70% of sales) and to customers visiting the vineyard and purchasing bottles of wine at the...
-
Helenas Chocolates is preparing a sales budget for the quarter (3 months) AprilJune 202X for their gift chocolate box product and a schedule of cash collections. The majority of their sales are cash...
-
Information technology has penetrated nearly all aspects of life in advanced nations, unlike many developing countries. This leads some people to say that technology widens the development gap...
-
The following table shows the demand and supply of boxed lunch meals per day at a small local restaurant. a. Graph the demand and supply curves. b. Compute consumer surplus, producer surplus, and...
-
How do L4L, FOQ, and POQ ordering policies impact set-up/ordering costs and inventory costs? Why?
-
The baseball player A hits the ball from a height of 3.36 ft with an initial velocity of 34.8 ft/s. 0.14 seconds after the ball is hit, player B who is standing 15 ft away from home plate begins to...
-
One thousand dollars is borrowed for one year at an interest rate of 1%per month. If the same sum of money could be borrowed for the same period at an interest rate of 12% per year, how much could be...
-
A sum of money Q will be received 6 years from now. At 5% annual interest the present worth now of Q is $60. At the same interest rate, what would be the value of Q in 10 years?
-
In 1995 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandez De Soto for $29,152,000. The picture depicts Picasso's friend Desoto seated in a Barcelona cafe...
-
A bond has a duration of 6.5 years. Its current market price is $1080. Interest rates in the market are 6% today. It has been forecasted that the interest rates will fall to 5% over the next couple...
-
Duke Energy ( DUK ) is an electric utility company that provides electric power to 10 million customers in the U.S. specifically in the Southeast and Midwest. DUK will pay a dividend this coming year...
-
Kuipers, Inc. 2009 Statement of comprehensive income ($ in millions) Net sales $1.384 Less: Cost of goods sold 605 Less: Depreciation 180 Earnings before interest and taxes 590 Less: Interest paid 80...
Study smarter with the SolutionInn App