Question

When price of a sandwich was $13.52, 115 sandwiches were sold per day. When P increased to $ 15.61 , 66 were sold per day, ceteris paribus. What is the price elasticity of demand? (Round to two decimals if needed). a. 0.27 b. 4.53 c. None of the answers offered are accurate. d. 3.77 e. 3.40 

          When price of a sandwich was $13.52, 115 sandwiches were sold per day. When P increased to $ 15.61 , 66 were sold per day, ceteris paribus. What is the price elasticity of demand? (Round to two decimals if needed).
a.
0.27
b.
4.53
c.
None of the answers offered are accurate.
d.
3.77
e.
3.40
Show more…

Added by Sebastian F.

Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
AceChat toggle button
Close icon
Ace pointing down

Please give Ace some feedback

Your feedback will help us improve your experience

Thumb up icon Thumb down icon
Thanks for your feedback!
Profile picture
When price of a sandwich was $13.52, 115 sandwiches were sold per day. When P increased to $ 15.61 , 66 were sold per day, ceteris paribus. What is the price elasticity of demand? (Round to two decimals if needed). a. 0.27 b. 4.53 c. None of the answers offered are accurate. d. 3.77 e. 3.40
Close icon
Play audio
Feedback
Powered by NumerAI
Danielle Fairburn Jennifer Stoner
Kathleen Carty verified

Willis James and 61 other subject Microeconomics educators are ready to help you.

Ask a new question
*

Labs

-

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs
*

Key Concepts

-
Key Concept
Premium Feature
Explore the core concept behind this problem.
Play button
Key Concept
Premium Feature
Explore the core concept behind this problem.
Your browser does not support the video tag.
*

Recommended Videos

-
5-if-the-price-of-burger-rises-for-12-per-piece-to-20-per-piece-as-a-result-of-which-the-daily-salesdecrease-from-300-to-200-pieces-per-day-the-price-elasticity-of-demand-can-be-estimated-as-84672

If the price of a burger rises from $12 per piece to $20 per piece, as a result of which the daily sales decrease from 300 to 200 pieces per day, the price elasticity of demand can be estimated as (a) 0.5 (b) 0.8 (c) 0.25 (d) 2.10.

Willis J.
suppose-the-demand-for-product-is-given-by-dp-3p-247-a-calculate-the-elasticity-of-demand-at-price-of-536_-elasticity-round-to-three-decimal-places-b-at-what-price-do-you-have-unit-elasticit-29117

Sri K.
question-suppose-the-demand-for-a-product-is-given-by-dp-5p-231_-a-calculate-the-elasticity-of-demand-at-a-price-of-s25_-elasticity-round-to-three-decimal-places-b-at-what-price-do-you-have-89527

Suppose the demand for a product is given by D(p) = - 5p + 231. A) Calculate the elasticity of demand at a price of $25. Elasticity = (Round to three decimal places.) B) At what price do you have unit elasticity? (Round your answer to the nearest penny.) Price = $

Adi S.
*

Recommended Textbooks

-
Principles of Economics

Principles of Economics

Gregory Mankiw 8th Edition
achievement 1,148 solutions
Principles of Microeconomics for AP® Courses

Principles of Microeconomics for AP® Courses

Steven A. Greenlaw, David Shapiro, Timothy Taylor 2nd Edition
achievement 1,986 solutions
Economics

Economics

Michael Parkin 12th Edition
achievement 1,401 solutions
*

Transcript

-
00:01 Lower into this lesson and this lesson will look for the price elasticity of demand given that we have a break at that rises from 12 puppies to 20 puppies and as a result decrease that the leases from 300 to 200 so we have the formula for the price elasticity of demand which is equal to the absolute value of the percentage change in quantity all right, divided by that percentage change in price per piece so let's see for the percentage change in quantity demanded which will be equals to the new quantity minus the old quantity divided by the old quantity demanded right then we multiply by 100 % so we have this as negative 100 divided by 300 times 100 % so this causes out that and we have 103 % let's leave it like this okay, then we come to the percentage change in price so this is equal to the new value of just 20 minus the old value all of the old value times 100 % so this becomes 8 .12 times 100 % all right, which is simplified as 203 % all right, so we come to the price elasticity of demand which is equals to here.
02:40 We have the quantity the percentage in your quantity which is 100 on 3 % divided by the change okay in price percentage change which is 200 on 3 % so we can write it as 103 times 3 on 200 the percentage goes away we're actually looking for absolute values then we also add that for this one we still maintain negative sign so that's more important the why we need absolute value so this causes all that and we are left with 100 on 200 which is equals to 0 .5 right, so therefore the price elasticity of demand is 0 .5 and that is the first alternative so option a which is 0 .5...
Need help? Use Ace
Ace is your personal tutor. It breaks down any question with clear steps so you can learn.
Start Using Ace
Ace is your personal tutor for learning
Step-by-step explanations
Instant summaries
Summarize YouTube videos
Understand textbook images or PDFs
Study tools like quizzes and flashcards
Listen to your notes as a podcast
Continue solving this problem
Create a free account to:
  • View full step-by-step solution
  • Ask follow-up questions with Ace AI
  • Save progress and study later
Continue Free
Join the community

18,000,000+

Students on Numerade

Trusted by students at 8,000+ universities

Numerade

Get step-by-step video solution
from top educators

Continue with Clever
or



By creating an account, you agree to the Terms of Service and Privacy Policy
Already have an account? Log In

A free answer
just for you

Watch the video solution with this free unlock.

Numerade

Log in to watch this video
...and 100,000,000 more!


EMAIL

PASSWORD

OR
Continue with Clever