Question: I need to calculate the elasticity coefficient c. Using the price and quantity you've identified, consider what would happen if this price were to increase

I need to calculate the elasticity coefficient

c. Using the price and quantity you've identified, consider what would happen if this price were to increase by 10%. Estimate the new industry quantity based on your statement in answer a. about whether or not this industry would be elastic or inelastic( I am doing ipads and i said its inelastic in q a) . Calculate the elasticity coefficient based on your price and quantity estimates and the industry revenue before and after the price increase.

i Also am not sure on how to get the ED like (-2.5 or 2.5 etc)

Price: 429$ CAD

Quantity: 12.9 million units

Rev: 5.5 $ (million)

P increased by 10% : 471$

Ed= % Q/ % P (not sure how to calculate this)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

I need to calculate the elasticity coefficient c. Using the price and quantity you've identified, consider what would happen if this price were to increase by 10%. Estimate the new industry quantity...

Using the price and quantity you've identified, consider what would happen if this price were to increase by 10%.Estimate the new industry quantity based on your statement in answer a. about whether...

A proposal was considered by European Union regarding the use of cap-and-trade systemto limit the damage caused by Spam, Phishing, malware etc. (I was one of the reviewers of this report which deals...

The current price of a non-dividend paying stock is 40 and the continuously compounded risk-free interest rate is 8%. You enter into a short position on 3 call options, each with 3 months to...

Help me please with economics test on elasticity 29. The price elasticity of demand is the: (2 Points) A .; (A) percentage ebonite in price/percentage change in quantity demanded. /'_'\\ I: (B)...

Please look over my work with the questions on the homework sheet, they are all labeled. The first few pages are my work, last few pages are the questions Gianna Gajdos Homework 1 This graph...

Please solve the second image (Number 1 to Number 3). *First Image is considered as homework 2; you do not need to solve the first image, but you will need the first image to solve the second image...

Please solve the second image (Number 1 and Number 3, not number 2). *First Image is considered as homework 2; you do not need to solve the first image, but you will need the first image to solve the...

answer only oters V, Micro) Question 5 (1 point) 3 Listen FIGURE 5.3 Chart of Demand Elasticity 6 9 12 we artaray Refer to Figure 5.3. Demand "B" represents a demand curve that is 15 O 1) perfectly...

Let X1,..., Xn be a random sample from a n(Î¼, Ï2) population, where both Î¼ and Ï2 are unknown. Each of the following methods of finding confidence intervals for...

The median annual personal income by visa stream is presented in the table below. Use this data to answer the following questions a. - d. Median Income in $ Median Income in $ Visa Stream 2015 2017...

A firm's marketable securities account has both 2 7 0 - day corporate commercial paper and three - month Treasury bills. If the firm chooses to shift its policy and invest 1 0 0 % in commercial...

Two piezometers are located 1000 ft apart with the bottom located at depaths of 50 ft and 350 ft, respectively, in a 400 ft thick unconfined aquifer. The depth to the water table is 50 ft in the...

Refer to the Auditing in Practice feature, "PCAOB Fines Ernst & Young for an Issue Involving Accounting Estimates." a. Auditors are required to provide reasonable assurances regarding accounting...

Between 1995 and 1997, American Airlines competed in the Dallas/Ft Worth Airport against several other low-cost carriers. In response to these low-cost carriers, American Airlines reduced its price...

Journey Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $15,000 to help organize the corporation. Journey Publishing also issued...

Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no...

Explain shareholders, directors, and officers and describe their relationship to each other and their respective rights, obligations, and duties

3. List four points that you think are important to give the individual attention, when he or she is going to sell an argument or an idea to you.

4. Think of a situation where you would convince someone of an argument or an idea you had. a. What feelings did you want the other person to be left with when you finished? b. When you think about...

7. Think of a situation where you felt that you mastered the situation, i.e. where you had a positive feeling of completing the task you were to perform. A. Now develop a picture in your imaginary...