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8. If a 22 percent increase in the price of cheerios causes a 27 percent
reduction in the number of boxes of cereal demanded, the price
elasticity of demand for cheerios is - ……….
The demand for cheerios is ……
9. The following table gives data on the price of rye and the number
of bushels of rye sold in 2013 and 2014
a. Calculate the change in the quantity of rye demanded divided by
change in the price of rye. Measure the quantity of rye demanded
in bushels. The change in the quantity of rye demanded divided by
the change in the price of rye in bushels is………
b. Calculate the change in the quantity of rye demanded divided by
change in the price of rye, but this time measure the quantity of
rye demanded in million of bushels. The change in the quantity of
rye demanded divided by the change in the price of rye in million
bushels is………
Compare to part a, the answer to part b is ……. In absolute
terms
c. Finally assuming the demand curve for rye did not shift between
2013 and 2014, use the information in the table to calculate the
price elasticity of demand for rye. Using the midpoint formla, the
price elasticity of demand for rye is ….
10.
Suppose the price elasticity of demand for cereal is -0.83.
If so then the price for demand for cereal is…..
In another example, assume the price elasticity of demand for
a particular magazine is …….
The price elasticity of demand for the magazine is ….