Question: In the year 107 WBCE (Way before the Common Era) the Gondwanaland Chairman of Production reported that the gosum berry growers were able to meet

In the year 107 WBCE (Way before the Common Era) the Gondwanaland Chairman of Production reported that the gosum berry growers were able to meet an average demand of 700 barrels of gosum berries per month at an average a price of $70 per barrel.
In the year 108 WBCE the growers were plagued with a gosum berry bug infestation that reduced average output, causing production to fall to only 600 barrels per month, causing the price to rise to $84 per barrel. The following table shows the Chairman's report:

Monthly barrels of berries demanded gosum Price per barrel Year (WBCE) 107 $70 700 108 $84 600

a. Using the midpoint method, calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means?
b. What is the monthly average total revenue for year 107, and the monthly average total revenue for year 108? How do these numbers compare to each other?

Monthly barrels of gosum berries demanded Monthly average total revenue Price per barrel Year (WBCE) 107 700 $70 108 600

c. Using your answer to part a. above, how could you have predicted this change in total monthly revenue?

Monthly barrels of berries demanded gosum Price per barrel Year (WBCE) 107 $70 700 108 $84 600 Monthly barrels of gosum berries demanded Monthly average total revenue Price per barrel Year (WBCE) 107 700 $70 108 600 $84 Change in average total monthly revenue

Step by Step Solution

★★★★★

3.52 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Using the midpoint method The midpoint is 700 70 600 84 70060013... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1258-L-B-L-I-L(680).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a wide variety of applications. Solutions Plus just received an invitation to submit a bid...

The management committee of Grant Electronics Inc. was studying a report prepared by its economics department about the expansion of a plant to increase their production capacity. The CEO, Jim Smart,...

'Before the crisis, production monitoring was done to please the client, not for problem-solving. Data readouts were brought to production meetings and we would all look at then, but none of us were...

The minutes of the board of directors of the Meeting of March 5, 2011 The meeting of the board of directors of Tetonic Metals was called to order by the James Cook, chairman of the board, at 8:30 am....

Answer Questions 1 - 7 1. Jane has been working all day, missing both her breakfast and lunch. Finally able to leave work, after being required to work a couple of overtime hours, she is starving....

2. Remembering the Learning Activity in Unit 3, in the year 107 WBCE (Way Before the Common Era) the Gondwanaland Chairman of Production reported that the gosum berry growers could meet an average...

You subconsciously assign "scores" to what you are considering purchasing, based on the expected level of satisfaction (marginal utility) with that purchase. When making simultaneous pairs of...

I need help with that assignment please: Assignment: please focus on marginal utility, price elasticity of demand, and understanding the difference between price elasticity of demand and income...

Questions 1. Jane has been working all day, missing both her breakfast and lunch. Finally able to leave work, after being required to work a couple of overtime hours, she is starving. Jane has $20 in...

I need help with that assignment please: Assignment: please focus on marginal utility, price elasticity of demand, and understanding the difference between price elasticity of demand and income...

CASE 16 Nucor Corporation in 2014: Combating Low-Cost Foreign Imports and Depressed Market Demand for Steel Products Arthur A. Thompson The University of Alabama n 2014, Nucor Corporation, with a...

If forecasting is so important, why do firms look to approaches such as CPFR as a way to reduce the need for forecasting?

What is the molecular formula of the following compound? Empirical formula: CH ( = 78.11 g/mol):

Eliminate the parameter t t o find a simplified Cartesian equation o f the form y ( x ) = m x + b for x = 8 - t y = 2 0 - 4 t The Cartesian equation i s y ( x ) =

Zoom Lens Consider the simple model of the zoom lens shown in Fig. 34.43a The converging lens has focal length f1, = 12cm, and the diverging lens has focal length f1 = - 12cm. The lenses are...

Analyze the case of polarization perpendicular to the plane of incidence (i.e. electric fields in the y direction, in Fig. 9.15). Impose the boundary conditions 9.101, and obtain the Fresnel...

The left end of a long glass rod 6.00cm in diameter has a convex hemispherical surface 3.00cm in radius. The refractive index of the glass is 1.60. Determine the position of the image if an object is...

An object is 24.0crn from the center of a silvered spherical glass Christmas tree ornament 6.00cm in diameter. What are the position and magnification of its image?

124/55Cs has a half-life of 30.8s. (a) If we have 8.8g initially, how many Cs nuclei are present? (b) How many are present 2.0min later? (c) What is the activity at this time? (d) After how much time...

15. Competitive markets tend to a. reduce labor market discrimination because nondiscriminating firms will employ cheaper labor, earn more profits, and drive discriminating firms out of the market....

A certain gas obeys the van der Waals equation with a =0.76 m6 Pa mol-2, its volume is found to be 4.00 X 10-4 m3 mol-1 at 288 K and 4.0 MPa. From this information calculate the van der Waals...

Calculate the pressure exerted by 1.0 mol H2S behaving as (a) A perfect gas, (b) A van der Waals gas when it is confined under the following conditions: (i) At 273.15 K in 22.414 dm3, (ii) At 500 Kin...

Express the van der Waals parameters a = 1.32 atm dm6 mol? And b = 0.0436 d3 mol-1 in SI base units.

Question 11 Cash flows from net income. 0/4 points activities are generally the cash effects of transactions and other events that enter into the determination of 1) financing 2) investing 3)...

An important factor in selling a residential property is the number of times real estate agents show a home. A sample of 16 homes recently sold in the Buffalo, New York, area revealed the mean number...

Yeatman Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: This project will require an investment of $15,000 in new equipment. The...