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To effectively solve for the elasticity of demand in economics, you can use the formula:
Elasticity of Demand ( Change in Quantity Demanded) / ( Change in Price)
By calculating the percentage change in quantity demanded and price, you can determine how responsive consumers are to price changes. A higher elasticity value indicates a more sensitive demand, while a lower value suggests less sensitivity.
What else can I help you with?
What is the point elasticity of the demand function p plus 4q equl to 80 at 10 and 400?
To answer this question you must know two things: 1) the point elasticity formula, and 2) the demand equation. 1) the point elasticity formula says: dQ/dP X P/Q is the point elasticity at a price (P) and the corresponding Quantity (Q) -P is the price you are evaluating the elasticity at, and Q is found by evaluating the demand equation at the price (P) -dQ/dP is the derivative of Q with respect to P 2) The demand equation for this particular problem is: P+4Q=80 The Answer: Step one: differentiate the demand equation with respect to P - to do this you must algebraically solve the demand equation for Q P+4Q=80 4Q=80-P Q=20-0.25P -next you must differentiate with respect to P dQ/dP=-0.25 Step 2: plug derivative into formula -now, refering back to the original formula, you have: -0.25 X P/Q Step 3: Plug in the values for P/Q - in this problem, they want you to evaluate the elasticity at price 10 and price 400 Price at 10: Elasticity(10)= -0.25 X (10/17.5)=-0.4375 or 0.4375 (elasticities are always positive) Now, the step above is very simple, all I did is multiplied the derivative of the demand function by the price over the quantity demanded evaluated at the price by the the demand function. All that is happening is I am following the point elasticity formula outlined at the top. Price at 400: Elasticity(400)=-0.25 X (400/-80)=1.25 And there you have it!
Basic problems in economics?
the basic problems in economics are as follows what to produce,this problem rise due to our limited resources to our unlimited wants.in economy, the producer try solve these problem by producing the commodity which have the highest demand which will leads higher profit.remember that resources (land labor capital entrepreneurship) are scare or limited.
How does economics help us to solve problems?
they tell the answer!! dah! lololololol
How do you solve unemployment problems by using 3 fundamental question of economics?
One possible way to solve unemployment problems is by using the 3 fundamental questions of economics. These are what to produce, how to produce it, and the cost of production.
Why managerial economics known as applied micro economics?
Managerial economics is known as applied microeconomics because it utilizes microeconomic theories and principles to solve practical business problems. It focuses on the decision-making processes of firms and individuals, analyzing how they allocate resources efficiently under constraints. By applying microeconomic concepts such as demand, production, and cost analysis, managerial economics helps managers make informed decisions that enhance organizational performance and profitability.
What is the point elasticity of the demand function p plus 4q equl to 80 at 10 and 400?
To answer this question you must know two things: 1) the point elasticity formula, and 2) the demand equation. 1) the point elasticity formula says: dQ/dP X P/Q is the point elasticity at a price (P) and the corresponding Quantity (Q) -P is the price you are evaluating the elasticity at, and Q is found by evaluating the demand equation at the price (P) -dQ/dP is the derivative of Q with respect to P 2) The demand equation for this particular problem is: P+4Q=80 The Answer: Step one: differentiate the demand equation with respect to P - to do this you must algebraically solve the demand equation for Q P+4Q=80 4Q=80-P Q=20-0.25P -next you must differentiate with respect to P dQ/dP=-0.25 Step 2: plug derivative into formula -now, refering back to the original formula, you have: -0.25 X P/Q Step 3: Plug in the values for P/Q - in this problem, they want you to evaluate the elasticity at price 10 and price 400 Price at 10: Elasticity(10)= -0.25 X (10/17.5)=-0.4375 or 0.4375 (elasticities are always positive) Now, the step above is very simple, all I did is multiplied the derivative of the demand function by the price over the quantity demanded evaluated at the price by the the demand function. All that is happening is I am following the point elasticity formula outlined at the top. Price at 400: Elasticity(400)=-0.25 X (400/-80)=1.25 And there you have it!
Basic problems in economics?
the basic problems in economics are as follows what to produce,this problem rise due to our limited resources to our unlimited wants.in economy, the producer try solve these problem by producing the commodity which have the highest demand which will leads higher profit.remember that resources (land labor capital entrepreneurship) are scare or limited.
How does economics help us to solve problems?
they tell the answer!! dah! lololololol
How do you solve unemployment problems by using 3 fundamental question of economics?
One possible way to solve unemployment problems is by using the 3 fundamental questions of economics. These are what to produce, how to produce it, and the cost of production.
Why managerial economics known as applied micro economics?
Managerial economics is known as applied microeconomics because it utilizes microeconomic theories and principles to solve practical business problems. It focuses on the decision-making processes of firms and individuals, analyzing how they allocate resources efficiently under constraints. By applying microeconomic concepts such as demand, production, and cost analysis, managerial economics helps managers make informed decisions that enhance organizational performance and profitability.
What is the propuse of a demand schedule?
A demand schedule allows the construction of a demand function which can be used to solve mathematical problems involving demand (such as finding equilibrium demand and price).
How do you solve for cross elasticity?
To solve for cross elasticity of demand, you use the formula: [ E_{xy} = \frac{%\ \text{Change in Quantity Demanded of Good X}}{%\ \text{Change in Price of Good Y}} ] First, calculate the percentage changes in quantity demanded for good X and the price of good Y. Then, divide the percentage change in quantity demanded of good X by the percentage change in price of good Y. A positive value indicates that the goods are substitutes, while a negative value suggests they are complements.
What domestic problem did Alexander Hamilton face and how did he plan to solve it?
economics financial program
What two economic problems does Keynesian economics seek to solve?
Keynesian economics primarily seeks to address two economic problems: unemployment and insufficient demand. By advocating for increased government spending and intervention during economic downturns, it aims to stimulate aggregate demand, thereby reducing unemployment and fostering economic growth. Additionally, Keynesian theory emphasizes the importance of fiscal and monetary policies to manage economic cycles and prevent prolonged recessions.
Is personal finance is the same thing as economics?
Personal finance can be the same thing as economics. Here is how that can work out. A person deals with personal finance with regard for example to a debt. The way to solve the debt problem is to use economics. The situation calls for increasing the output of a personal resource based on the marketability of the individuals resource. The resource can be an expertise in administering expatriate affairs of various corporations. The demand can be strong in this field. The supply can be short. With this scenario, the individual increases the price of the expertise and thus via economics solves the debt problem.
How is economics often described?
Economics is often described as a body of knowledge or study that discusses how a society tries to solve the human problems of unlimited wants and scarce resources.
What is is the relationship of arts and economics?
Economics is both science and an art. It is a science because there exist lots of principles, laws and fundaments in economics. Statistics as part of economics also involves lots of theorems and principals. It is the art of implementation of these principles through which we could solve and analyze many economic and commercial problems
