Elasticity formula when price falls

When the quantity of SCUBA lessons demanded by Hawaiian tourist’s increases from 800 to 1,000 weekly and if the price drops/falls from $30 to $20 per session, by using the arc elasticity formula, the price elasticity of demand will be: (i) 5.555. (ii) 1.800. (iii) 0.556. (iv) 1.111. (v) 0.444.

Can someone help me in getting through this problem.

View Complete Question

Related Questions in Microeconomics

Q : Problem regarding to tax wedges in

In equilibrium, a tax upon a good tends to because of the: (1) supply to exceed the demand. (2) quantity supplied to exceed the quantity demanded. (3) demand prices of consumers to exceed the supply prices of sellers. (4) competitive

Q : Complete equilibrium by distribution of

When the economy was in a complete equilibrium, in that case the distribution of income would be precisely proportional to the distribution of: (a) taxation. (b) inheritance. (c) luck. (d) wealth.

Q : Describe economic perspective The

The economic perspective refer as: 1) macroeconomic phenomena, but not microeconomic phenomena. 2) microeconomic phenomena, but not macroeconomic phenomena. 3) the making of purposeful decisions in a context of marginal costs and marginal benefits. 4) unlimited resour

Q : Ceiling price problem When the

When the government obliged a ceiling price of P0 on papayas, the market scarcity would correspond to line: (1) ab. (2) cd. (3) ac. (4) bd. (5) ae. </span></p>
</div>

</li>

</td>
</tr><tr>
<td>

<li>
<div class=

Q : Asymmetric Information problem The

The one-year old car tends to sell for much less than the brand latest car. A part of the reason is that: (i) Sellers and buyers have similar information regarding used cars as they do latest cars. (ii) Buyers and sellers both encompass more information regarding new

Q : Define deficient demand Deficient

Deficient demand: If AD < AS at full employment level, then it is defined as deficient demand.

Q : Production function explain the

explain the properties of isoquants with diagram

Q : Explain about term market failure The

The phrase "market failure" refers to: (w) the failure of market economies to deal with social problems. (x) the Stock Market Crash of 1929. (y) cases where supplies and demands within private markets yield inefficiency, excessive or inequity instabil

Q : Quantity demanded grows with price cut

A price elasticity of demand coefficient of 2.5 approximately implies that: (1) quantity demanded rises 1 percent while price rises 2.5 percent. (2) quantity demanded grows 2.5 percent along with a 1 percent price cut. (3) price rises 2.5 percent whil

Q : Price elastic of supply between two

In between point c and d in this supply curve of 2×4s, the price elastic of supply as: (i) 1.0. (ii) 1.6. (iii) 2.2. (iv) 2.8. (v) 3.4.

Discover Q & A

Leading Solution Library

Avail More Than 1436118 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1949769
Asked

3,689

Active Tutors

1436118

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment