Hi I'm Aleck, ask me anything...

About me: I’m Smart Aleck, your trusty Answer Bot. I use AI to answer your questions simply and clearly. Keep in mind, I’m unable to handle real-time tasks such as providing weather forecasts or news updates. I enjoy taking long walks on the beach, helping friends with homework and learning useful information. Ask away!

Suppose that Super Market increased the price of a dozen free-range eggs from $5.50 to $6.50. As a result, it found that the daily quantity sold fell from 42 to 38 dozen. a) What is the price elasticity coefficient of demand for eggs? Round your answer to 1 decimal place.

Answer: The price elasticity of demand for eggs is -0.6. This means that when the price of eggs increases, the demand for eggs decreases by 0.6.

Definition of Price Elasticity of Demand

Price elasticity of demand (PED) is a measure of how sensitive the demand for a product is to changes in its price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. PED can be either elastic, inelastic, or unitary.

Calculation of Price Elasticity of Demand for Eggs

In this case, the original price of eggs was $5.50 and the new price was $6.50. The original quantity sold was 42 dozen and the new quantity sold was 38 dozen. To calculate the price elasticity of demand for eggs, we need to first calculate the percentage change in quantity demanded and the percentage change in price:

Percentage change in quantity demanded = (38 – 42) / 42 * 100 = -9.52%
Percentage change in price = (6.50 – 5.50) / 5.50 * 100 = 18.18%

The price elasticity of demand for eggs is then calculated by dividing the percentage change in quantity demanded by the percentage change in price:

Price elasticity of demand for eggs = -9.52% / 18.18% = -0.6

Conclusion

The price elasticity of demand for eggs is -0.6. This means that when the price of eggs increases, the demand for eggs decreases by 0.6.

Related Questions

What is price elasticity of demand?
What is the difference between price elasticity of demand and price elasticity of supply?
What are the factors that affect price elasticity of demand?
What is an example of an inelastic good?
What is an example of an elastic good?
What is the formula for calculating price elasticity of demand?
What is the formula for calculating price elasticity of supply?
What is the difference between absolute and relative price elasticity?
How can price elasticity of demand be used to predict changes in revenue?
What is the difference between price elasticity of demand and income elasticity of demand?

Recent Questions

what are the key researcher who worked on the relationship between crop diversification as a rainfed farming system management strategy and climate change and socio-economic determinants of adaptation

how the culture of consumption started?

An economy is currently in a recession caused by a shift in aggregate demand, given time, the economy can adjust itself back to potential output (in the long run) as the expected price level a. rises, shifting aggregate demand curve to the right. b. rises, shifting aggregate demand curve to the left. c. falls, shifting aggregate demand curve to the right. d. falls, shifting short-run aggregate supply curve to the right. e. falls, shifting short run aggregate supply curve to the left.

Dead phone and pc logo

Identify the part of speech for the highlighted word in the sentence, which is fuzzy. My fuzzy blanket sat on the edge of my couch in my living room.

Identify the part of speech for the highlighted word in the sentence. My fuzzy blanket sat on the edge of my couch in my living room.

Read the sentence and determine the meaning of the word using context clues and your prior knowledge. Then, explain what clues in the sentence helped you determine the meaning. I wanted to just finish setting the table, but my mother scrupulously arranged each napkin, dish and utensil until they were in perfect alignment.

Which of the following sentences contains a comma splice? A) I went to the store, but I forgot to buy milk. B) Sarah loves to read books, and she enjoys writing stories. C) The cat climbed up the tree, it was afraid of the dog. D) John and Mary went to the park, and they played on the swings.

Read the following sentence and answer the question below. “The protagonist of the story embarked on a perilous adventure.” What does the word “protagonist” mean? A) A type of conflict in a story B) The main character in a story C) A sudden and unexpected event D) The setting of a story

What is the correct definition of the word “indignant”? A) Extremely happy B) Feeling or showing anger C) Full of energy and excitement D) Having a strong desire to succeed

Két tökéletesen versenyző vállalat, egy akkumulátorgyár és egy strand, egymástól nem messze működnek egy folyó partján. Az akkumulátorgyár költségfüggvénye TCA=5·A2+120·A. Az akkumulátorok ára 1120 Ft darabonként. A strand költségfüggvénye TCS=2·S2+10·S+80·A. A strandbelépő ára 410 Ft alkalmanként. Ekkor… 1 kérdésVálasszon ki egyet: a. a strand tevékenységének pozitív externális hatása van az akkumulátorgyár működésére. b. a strand tevékenységének negatív externális hatása van az akkumulátorgyár működésére. c. a strand tevékenységére negatív externális hatása van az akkumulátorgyár működésének. d. a strand tevékenységére pozitív externális hatása van az akkumulátorgyár működésén

Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 4 + Q. If the demand curve for this industry is P=10–2Q1000 , what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter? (Round your answers to the nearest whole number.) Producer Surplus: Numeric Response 1.Edit Unavailable. not attempted, incorrect. Consumer surplus: Numeric Response 2.Edit Unavailable. not attempted, incorrect. Explanation

Each of 1,000 identical firms in the competitive peanut butter industry has a short-run marginal cost curve given by SMC = 4 + Q. If the demand curve for this industry is P=10–2Q1000 , what will be the short-run loss in producer and consumer surplus if an outbreak of aflatoxin suddenly makes it impossible to produce any peanut butter? (Round your answers to the nearest whole number.) Producer Surplus: Numeric Response 1.Edit Unavailable. not attempted, incorrect. Consumer surplus: Numeric Response 2.Edit Unavailable. not attempted, incorrect. Explanation SR supply = ΣMCi MCi = 4 + Qi Qi = MCi − 4 = P − 4 ΣQi = Q = 1,000 − 4,000 Which means that industry supply is given by P = 4 + Q/1,000. SR equilibrium Q: 4 + Q/1,000 = 10 − 2Q/1,000 3Q/1,000 = 6, Q = 2,000, P = 6. Consumer surplus = area of upper triangle = (10 − 6) × 2,000/2 = 4,000 Producer surplus = area of lower triangle = (6 − 4) × 2,000/2 = 2,000 Total loss in surplus = 6,000

A) She likes to run, hiking, and biking. B) He wants to play basketball, jogging, and to swim. C) They can either go shopping or to watch a movie. D) I enjoy reading, writing, and solving puzzles.

Which of the following is an example of an informational text? A) A novel set in the future B) A poem about love and loss C) A newspaper article about climate change D) A fictional story about talking animals

Provide an example of: Direct tourism effect: Indirect tourism effect: Induced tourism effect:

Provide an example of: Tourism contribution: Tourism impact: Tourism benefit: with examples

Provide an example of: Tourism contribution: Tourism impact: Tourism benefit:

Suppose a destination which was visited by 20 000 tourists more in 2023. They spent on average $ 350 on their vacation. The regional GDP of the destination was $ 1.237 billion in 2022. The growth rate of the regional GDP was 1.3 %. What is the value of an output multiplier?

Suppose an economy for which mpc = 0.75 and an original French tourist’s expenditure in this economy was $ 250. Calculate first three steps of the multiplication: Further suppose that the marginal rate of income taxation is 0.2. How much will the GDP of the given destination’s country change in total?

Why measuring the economic benefits is so difficult?

Why mpc + mps is always equal to one?

What is the difference between direct, indirect, and induced effect? in economic par of view

What is the difference between direct, indirect, and induced effect?

What is the difference between direct and indirect contribution?

Suppose an economy for which mpc = 0.75 and an original French tourist’s expenditure in this economy was $ 250. Calculate first three steps of the multiplication:

what is the contribution of BPI in the Philippines capital market industry

fungsi permintaan bagi keluaran sebuah syarikat diberikan oleh P=60-Q. Kos tetap ialah 100, dan kos berubah bagi setiap barang ialah Q+6. Tuliskan ungkapan bagi jumlah kos, TC, dalam sebutan Q dan simpulkan bahawa fungsi purata diberikan oleh AC=Q+6+100/Q

Let market demand be given by the inverse demand curve P(Q) = 50−2Q, where Q = q1 + q2. The cost function for each of the two firms in the industry is C(qi) = 2qi . Firms are Cournot competitors. (a) Define the best-response function of a firm. Derive the best-response function of each firm. (b) Find for each firm in the Cournot equilibrium firm output and firm profits. What is the price that clears the market? Is the outcome efficient?

Carbon disulfide gas and oxygen gas react to form sulfur dioxide gas and carbon dioxide gas. What volume of sulfur dioxide would be produced by this reaction if 3.0m^3 of oxygen were consumed? Also, be sure your answer has a unit symbol, and is rounded to the correct number of significant digits.

Use the following graph of the market for cases of beer to answer the questions that follow. (Note: You will not be graded on any changes you make to the graph.) Scratch points 0 1 2 3 4 5 6 7 8 9 10 10 9 8 7 6 5 4 3 2 1 0 Price of Beer (Dollars per case) Quantity of Beer (Thousands of cases) Demand Supply Complete the first row of the following table by entering the price paid by consumers, the price received by producers, and the quantity of beer sold in the absence of a tax on this market. Tax Price Paid by Consumers Price Received by Producers Quantity of Beer Sold (Dollars per case) (Dollars per case) (Dollars per case) (Thousands of cases) 0 4 Suppose the federal government requires beer drinkers to pay a $4 tax on each case of beer purchased. (In fact, both the federal and state governments impose beer taxes of some sort.) Complete the second row of the above table by entering the price paid by consumers, the price received by producers, and the quantity of beer sold when beer drinkers pay a $4 tax on each case of beer. As a result of the tax, the price producers receive . Continue without saving

Suppose the central bank in the nation of Zook attempts to pay off its national debt by printing large amounts of currency. The large increase in the money supply causes the price level to rise by 1,300 percent. What do you expect will happen to the value of Zook’s currency? Instructions: Round your answer to the nearest whole number. The value of Zook’s currency will decrease by percent.

the answer is incorrect i need juist the final answer

Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $21,000 quarterly paymetns for 13 years; interest rate 6.6% enter your response here. (Do not round until the final answer. Then round to the nearest cent as needed.) i need the final answer

Assume the value of a country’s currency is 1 when the price level is 0.75. Instructions: Enter your answers rounded to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. If the price level changes to 0.6, by how much in percentage terms will the value of the country’s currency change?

Assume that Jimmy Cash has $2,100 in his checking account at Folsom Bank and uses his checking account debit card to withdraw $210 of cash from the bank’s ATM machine. By what dollar amount did the M1 money supply change as a result of this single, isolated transaction? Instructions: Enter your answer as a whole number. $

At the equilibrium interest rate, what are the quantity of money supplied, the quantity of money demanded, the amount of money demanded for transactions, and the amount of money demanded as an asset in Trance? Quantity of money supplied = $ billion Quantity of money demanded = $ billion Amount of money demanded for transactions = $ billion Amount of money demanded as an asset = $ billion

Assume that the following data characterize the hypothetical economy of Trance: money supply = $200 billion; quantity of money demanded for transactions = $160 billion; quantity of money demanded as an asset = $10 billion at 12 percent interest, increasing by $10 billion for each 2-percentage-point fall in the interest rate. Instructions: Enter your answers as a whole number. What is the equilibrium interest rate in Trance? percent

final reflections on sociology

how to make a kel nuke omori

how to make a kel nuke

Monopolistic competition. Refer to the above graphs and answer the following questions… Group of answer choices Which graph represents a monopolistically competitive firm in long-run equilibrium? [ Choose ] In Figure 4, why is the ATC curve not tangent to the demand curve at its minimum? [ Choose ] Referring to Figure 1, how is the profit-maximizing production quantity determined? [ Choose ] For Figure 1, is this firm making a profit or a loss? [ Choose ] Which graph shows a firm incurring short-run losses [ Choose ] Referring to Figure 3, identify the lower right point of the profit or loss rectangle? [ Choose ] Referring to Figure 3, identify the upper right point of the profit or loss rectangle? [ Choose ] Referring to Figure 1, identify the upper right point of the profit or loss rectangle? [ Choose ] Referring to Figure 1, identify the lower right point of the profit or loss rectangle? [ Choose ] Referring to Figure 2, could this depict a monopolistically competitive firm incurring short-run losses?

Pouvez-vous expliquer comment la fonction de production CES intègre la notion d’élasticité constante de substitution ?

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ) . Supposez que 𝛼 = 1. Est-il possible de donner l’expression de la fonction d’offre ? Justifiez votre réponse

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ) . . Supposez que l’entreprise vend l’output à un prix 𝑝 fixe, trouvez les valeurs des paramètres 𝛼 et 𝛽 qui vérifient les conditions de second ordre pour la maximisation du profit.

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ) . what is demand function for inputs

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ) . what is demand function for imputs

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ) . Supposez que l’entreprise vend l’output à un prix 𝑝 fixe, trouvez les valeurs des paramètres 𝛼 et 𝛽 qui vérifient les conditions de second ordre pour la maximisation du profit.

𝑞 = min (𝑧1^(𝛼) ,𝛽𝑧2 ),

• What are the key components of effective leadership and strategic planning in military management?

•• What Are The Benefits Of International Cooperation In Military Management?

find the marginal revenue A monopolist has a demand curve given by P = 100 − Q and a total cost curve given by TC = 32 + Q2. The associated marginal cost curve is MC = 2Q. Find the monopolist’s profit-maximizing quantity and price. How much economic profit does the monopolist earn? (Enter your answers in whole numbers.

• • What is the future of the military?

• • What are the impacts of technology on the military?

• How has technology changed the role of the military?

• • What is the role of technology in asymmetric warfare?

• What are the benefits of training and education in the military?

• What is the role of the military in international relations?

• What is the history of the military?

how to elaborate more on ‘Effective Leadership And Strategic Planning in military management’