HW chap 2

# Nootherfactorsthatmightaffectthedemand

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Unformatted text preview: uctions: Round your answer to 2 decimal places. Include a negative sign if necessary. ­2. 26 . b. At what price would the total expenditure on jelly beans have been largest? Instructions: Round your answer to 2 decimal places. \$2. 16 . rev is ed jrl 08­09­2011 Worksheet Section: Elasticities of Demand and Supply Suppose the demand function for jelly beans in Cincinnati is linear. Two years ago, the price of jelly beans was \$1.75 per pound, and consumers purchased 103,000 pounds of jelly beans. Last year the price was \$3.00, and consumers purchased 53,000 pounds of jelly beans. No other factors that might affect the demand for jelly beans changed. a. What was the elasticity of demand at last year’s price of \$3.00? Instructions: Round your answer to 2 decimal places. Include a negative sign if necessary. ­2.26 ± .03 . b. At what price would the total expenditure on jelly beans have been largest? Instructions: Round your answer to 2 decimal places. \$ 2.16 ± .03 . rev is ed jrl 08­09...
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