Using the midpoint formula, the price elasticity of demand between points A and

Question

Using the midpoint formula, the price elasticity of demand between points A and B is:

Using the midpoint formula, the price elasticity of demand between points B and C is:

It is a hot day at the beach. Ice water costs $1 per bottle and this is your only option. Your marginal benefit for water follows the equation MB = $10 - $x.

x is represents the number of bottles of ice water you have had. So, for example, the marginal benefit of the first bottle is $10 - $1 = $9. The MB of the 2nd bottle is $8 .. and so on.

Assuming you are an economically rational consumer how much consumer surplus will you achieve when you are done for the day?

36 or 40.5 ... depending on whether you found the area of the triangle or added up each purchase incrementally.

It is a hot day at the beach. Ice water costs $1 per bottle and this is your only option. Your marginal benefit for water follows the equation MB = $10 - $x.

x is represents the number of bottles of ice water you have had. So, for example, the marginal benefit of the first bottle is $10 - $1 = $9. The MB of the 2nd bottle is $8 .. and so on.

Assuming you are an economically rational consumer how much consumer surplus will you achieve on the first bottle of water?

Explanation / Answer

1) Ans: none of the answer is correct

Explanation:

PED between point A & B = (300 - 100) / (12 - 18) * (18 + 12) / (100 + 300)

= (200 / -6) * (30 / 400)

= -6000 / 12000

= -2 / 4

The absolute value is 2 / 4

So, none of the answer is correct

2) Ans: 3 / 4

Explanation:

PED between point B & C

= (500 - 300) / (6 - 12) * (12 + 6) / (300 + 500)

= (200 / -6) * (18 / 800)

= -3600 / 4800

= -3 / 4

The absolute value is 3 / 4.

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