How would you answer this if this is the only info you are given?
2006-07-24 06:58:30 · 7 answers · asked by Marie 1 in Social Science ➔ Economics
One cannot answer this question even if one assumed linear demand.
If the question were about supply one could also not answer it. However if it were about supply one could assume that supply is linear and also goes through (0,0). Then you could use the standard formula. Here you would get .5/20=0.025.
But the question as you write it cannot be answered.
2006-07-28 06:45:35 · answer #1 · answered by martinnychk 1 · 0⤊ 0⤋
Not enough info for an honest answer, but I'd hazard that the demand is relatively elastic at a price of
$20.
2006-07-24 15:34:09 · answer #2 · answered by lighthouse 4 · 0⤊ 0⤋
You can't. To estimate elasticity, you need TWO prices and TWO quantities demanded.
2006-07-24 07:09:23 · answer #3 · answered by NC 7 · 0⤊ 0⤋
You really can't find if you don't have a deamand function estimated or at least 2 quantities and 2 prices to cauculate some variation.
2006-07-24 14:58:23 · answer #4 · answered by Andre Loureiro 2 · 0⤊ 0⤋
You'd have to run a parametric differential equation in this instance:
Let R=new price, Q=new quantity
Solve dQ/dR = -(1-2Q)/(1-.05R)
2006-07-26 03:05:24 · answer #5 · answered by Veritatum17 6 · 0⤊ 0⤋
value e of call for = (?P/?D)*(D/P) so, with P=25, D = 20, using that equation = (25-20)/(20-40) * (20/25)... you are able to make certain this with P=20, D = 40, using the equation.. you are able to make certain
2016-12-10 14:44:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The question is "How would you answer?" Then, I would answer, that it depends on the quantity offered.
2006-07-24 07:48:22 · answer #7 · answered by Andres Q 1 · 0⤊ 0⤋