HW chap 3-2

00pergallon

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Unformatted text preview: 1/22/2014 4. Assignme nt Pr int Vie w awar d: 16.66 out of 16.66 points Suppose that the U.S. demand for maple syrup, in thousands of gallons per year, is where P is the price per gallon. What is the elasticity of demand at a price of $66.00 per gallon? Instructions: Round your answer to 2 decimal places. Include a negative sign if necessary. ­0.50 . rev is ed jrl 08­09­2011 Worksheet Section: Elasticities of Demand and Supply Suppose that the U.S. demand for maple syrup, in thousands of gallons per year, is where P is the price per gallon. What is the elasticity of demand at a price of $66.00 per gallon? Instructions: Round your answer to 2 decimal places. Include a negative sign if necessary. ­0.49 ± .03 . rev is ed jrl 08­09­2011 Explanation: The elasticity of demand At price P, denoted Ed equals the percentage change in the amount demanded for each 1 percent increase in the price. Demand for maple syrup is given by: The elasticity of demand for a linear demand curve starting at price P and quantity Q is: For a linear demand curve of the form , the first term in parentheses equals . Th e re fo re , Specifically: 6. awar d: 16.66 out of 16.66 points Consider the following demand and supply f...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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