Answer:
PED = -0.176 or 0.176 in absolute terms. It is price inelastic, since PED < 1.
Explanation:
the quantity demanded for a price of $10 is 900 barrels.
the quantity demanded for a price of $20 is 800 barrels.
Using the midpoint method for calculating PED:
PED = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}
PED = {(800 - 900) / [(800 + 900) / 2]} / {($20 - $10) / [($20 + $10) / 2]}
PED = (-100 / 850) / ($10 / $15) = -0.1176 / 0.6667 = -0.176
Price elasticity of demand measures how much does the quantity demanded of a good or service vary as a result form a 1% change in its price.
Answer: 0.0784
Explanation: had to seem up the whole question online.
Price of gosum berries per barrel
$100 - 0
$90 - 100
$80 - 200
$70 - 300
$60 - 400
$50 - 500
$40 - 600
$30 - 700
$20 - 800
$10 - 900
$0 - 1000
Midpoint method formula ( elasticity)
Price at $10=900 be (a)
Price at $20=800 be ( b)
Price (a¹) =$10
Price ( b¹) =$20
(b-a) / (b+a) /2) × (b¹-a¹) / (b¹+a¹)/2
= (800-900) / (800+900) /2 × (20-10) / (20+10)/2
= ( 100 ) / ( 850 ) × (10) / ( 15 )
= 0.11765 × 0.6666
= 0.0784
The elasticity noticed from the calculated value which is = 0.0748 it's a wonderfully inelastic demand. Where a change within the price has no effect on the amount of the products demanded. elasticity of demand = 0
