University of Notre Dame BUSINESS 001 calculate.odt

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Refer to the Unit 3 Learning Journal Elasticity Tables document to complete the assignment. 1. Calculate the price elasticity of demand from point B to point C. Price elasticity of demand =(dq/q)/(d... p/p), where dq is the change in quantity and dp is the change in price. Price elasticity of demand From B to C = (3500-2000=1500/2000)/(30-20=10/20) = 1.5 2. Classify the elasticity for point B to point C as elastic, inelastic, or unitary. 3. the demand for the product is elastic 4. Provide an explanation for the elasticity for point B to point C. when the price of the good changes by 1, the quantity demanded changes by 1.5. 5. Calculate the price elasticity of demand from point D to point E. Price elasticity of demand from D to E= (1700-1800=-100/1800)/(50-40=10/40) = -0.222 6. Classify the elasticity for point D to point E as elastic, inelastic, or unitary. the demand for the product is inelastic 7. Provide an explanation for the elasticity for point D to point E. Since it is less than 1 and the price of the good changes by 1, the requested amount adversely changes by -0.222. 8. Calculate the price elasticity of demand from point G to point H. Price elasticity of demand From G to H= (1600-2200=-600/2200)/(80-70=10/70) = -1.909 9. Classify the elasticity for point G to point H as elastic, inelastic, or unitary. the demand for the product is inelastic 10. Provide an explanation for the elasticity for point G to point H. Since it is less than 1 and when the price of the good increases by 1, it changes negatively by -1,909 to the quantity requested. 11. Calculate the price elasticity of supply from point K to point L. price elasticity of supply =Percentage Change in Quantity Supplied \Percentage Change in Price price elasticity of supply from point K to point L= (1100-1000)\((1100-1000)\2)\(8-4)\((8+4)\2)=0.14 12. Classify the elasticity for point K to point L as elastic, inelastic, or unitary. The supply of the product is inelastic 13. Provide an explanation for the elasticity for point K to point L. Since it is less than 1 and the price of the supply changes by 1, the requested supply adversely changes by 0.14 14. Calculate the price elasticity of supply from point N to point P. price elasticity of supply from point N to point P=(3200-1600)\((3200+1600)\2)\(64-82)\((64+82)\2)= -2.70 15. Classify the elasticity for point N to point P as elastic, inelastic, or unitary [Show More]

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