• 100% Satisfaction Guarantee

R.R. Jha, Tutor
Category: Homework
Satisfied Customers: 5471
Experience:  B.Tech
20870358
R.R. Jha is online now

# Use the arc-approximation formula to calculate the price-elasticity

### Resolved Question:

Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity, price) points (\$100, \$20) and (\$300, \$10). Calculate the cross price elasticity of demand coefficient of a firm's product Y, causes the quantity demand of product X to increase by 10%. Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumer's income will increase the quantity demanded by 6%
Submitted: 4 years ago.
Category: Homework
Expert:  R.R. Jha replied 4 years ago.
Hi,

Please re-write the second part. What's the percentage change in price of Y?

Thanks
Expert:  R.R. Jha replied 4 years ago.
Use the arc-approximation formula to calculate the price-elasticity of demand coefficient of a firm's product demand between the (quantity, price) points (\$100, \$20) and (\$300, \$10)

Price elasticity of demand

= ((300-100)/((300+100)/2)) / ((10-20)/((10+20)/2))
= -1.5

Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumer's income will increase the quantity demanded by 6%

Income elasticity of demand
= %change in demand / %change in income
= 6% / 4%
= 1.5

Let me know if any question.
Thanks
Customer: replied 4 years ago.
I also had in the question Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 5% increase in the price of its close substitute, Product Y, causes the quantity demand of product X to increase by 10%. I do not see that calculation.
Expert:  R.R. Jha replied 4 years ago.

You need to spend \$3 to view this post. Add Funds to your account and buy credits.
R.R. Jha, Tutor
Category: Homework
Satisfied Customers: 5471
Experience: B.Tech
Customer: replied 4 years ago.
I submitted a second homework problem but have not received a response. Are you working on that problem?
Expert:  R.R. Jha replied 4 years ago.

For any future questions you'd like to ask me, please put 'RRJha' at the start.

Thanks
Customer: replied 4 years ago.

I sure will. I thought that your name was on my question.
Expert:  R.R. Jha replied 4 years ago.
No problem.

And I too reviewed the answer by another expert. I think it isn't quite clear. I've posted a cleaner answer. Just double click any highlighted cell to see formula used.

Thanks
Customer: replied 4 years ago.
Are you able to do the 2nd homework problem that I submitted because I have not heard from the person that worked on it and I am trying to understand how the work was done.
Expert:  R.R. Jha replied 4 years ago.
I answered that one. Please review it and let me know. Just double click any highlighted cell to see formula used for its calculation.
Expert:  R.R. Jha replied 4 years ago.
Hope you received my answer on marginal and average cost schedule. All set, please don't forget to hit accept button. Then let me know if I could help with any other question.

Thanks

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

### What Customers are Saying:

• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Previous | Next >
• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
• This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
• Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
• I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
• Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
• Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
• He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX

• ### LogicPro

#### Satisfied Customers:

4925
Expert in Java C++ C C# VB Javascript Design SQL HTML
< Last | Next >

### LogicPro

#### Satisfied Customers:

4925
Expert in Java C++ C C# VB Javascript Design SQL HTML

### Manal Elkhoshkhany

#### Satisfied Customers:

4538
More than 5000 online tutoring sessions.

### Linda_us

#### Satisfied Customers:

3138
Post Graduate Diploma in Management (MBA)

### Chris M.

#### Satisfied Customers:

2602
Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)

### F. Naz

#### Satisfied Customers:

2126
Experience with chartered accountancy

### Bizhelp

#### Satisfied Customers:

1887
Bachelors Degree and CPA with Accounting work experience