Ask Question
BusinessBusiness
7 October, 20:49

Suppose that at a price of $8, 13,600 units were sold while at a price of $6, 15,200 units were sold. Without calculating the value of price elasticity of demand, can you determine whether demand is elastic, unit elastic, or inelastic between the price of $6 and the price of $8?

+3
Answers (2)
  1. 7 October, 20:55
    0
    Inelastic between the price of $6 and the price of $8

    Explanation:

    At price $8, the total expenditure;

    = price * Quantity

    =$8 * 13600

    =$108,800

    At price $6, the total expenditure;

    =$6 * 15200

    =$91,200

    Since the total expenditure is decreasing with a decrease in price then the elasticity of demand will be inelastic.
  2. 7 October, 21:11
    0
    Inelastic

    Explanation:

    The elasticity of demand is the response of consumers to a change in the price of a product (Barnier, 2020). It is calculated as the percentage change in the quantity demanded divided by the percentage change in price.

    Looking at the number of units sold at each price ($6 and $8), we can determine that the demand is inelastic. The percentage change in demand is smaller than the percentage change in price. This means that the demand curve will be steep.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that at a price of $8, 13,600 units were sold while at a price of $6, 15,200 units were sold. Without calculating the value of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Sun Corp. had investments in marketable debt securities costing $650,000 that were classified as available-for-sale.
Answers (1)
Mary incurred a $20,000 nonbusiness bad debt last year. She also had an $18,000 long-term capital gain last year. Her taxable income for last year was $25,000. During the current year, she unexpectedly collected $12,000 on the debt.
Answers (1)
This is for personal finance. I'm doing a cross word. The term is ... A person who will take possession of the property
Answers (1)
Which of the following is not an example of IFRS simplified for SMEs? Multiple Choice a. All borrowing costs are expensed as incurred. b. All development costs are expensed as incurred. c. Goodwill is amortized over its useful life. d.
Answers (1)
A person who scored very high in the Social category of a Career Interest Assessment would be best suited for which of the following career? A) Meteorologist B) Carpenter C) Physical therapist D) Long-distance truck driver
Answers (1)
New Questions in Business
Charm Co. owns a delivery truck with an original cost of $10,000 and accumulated depreciation of $7,000. Charm acquired a new truck by exchanging the old truck and paying $2,000 in cash.
Answers (1)
On July 1st, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8 year life with a residual value of $16,000. Harding uses straight-line depreciation.
Answers (1)
Which of the following refers to the costs of production that fluctuate depending on the number of units produced? A. Total cost B. Contribution per unit C. Markup D. Variable cost E. Fixed cost
Answers (1)
Your assistant wants to use secondary data exclusively for the current research project. You advise him that the use of secondary data has some potential problems. Which of the following is NOT one of them? A) It may not exist.
Answers (1)
Emma is babysitting Laura's children. Emma turns on the stove to make dinner, but a flame shoots out and burns Emma's hand. Later, Laura realizes she forgot to tell Emma not to turn on the stove. Which type of insurance is needed?
Answers (1)
Home » Business » Suppose that at a price of $8, 13,600 units were sold while at a price of $6, 15,200 units were sold. Without calculating the value of price elasticity of demand, can you determine whether demand is elastic, unit elastic, or inelastic between the
Sign Up Forgot Password?