# The table gives the demand schedule for peanuts. When the price of peanuts falls from $0.60 to...

## Question:

The table gives the demand schedule for peanuts.

When the price of peanuts falls from $0.60 to $0.20 a packet, what is the change in total revenue?

Over the price range of $0.20 and $0.60, the demand for peanuts is?

Price (dollars per packet) | Quantity demanded (packets per day) |
---|---|

0.20 | 800 |

0.40 | 700 |

0.60 | 600 |

0.80 | 500 |

1.00 | 400 |

1.20 | 300 |

1.40 | 200 |

1.60 | 100 |

## Price Elasticity of Demand:

Demand is said to be elastic if quantity demanded changes by more than one percent, when price changes by one percent. Otherwise, demand is said to be inelastic. When demand is elastic, reducing price would increase total revenue. When demand is inelastic, increasing price would increase total revenue.

## Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answerWhen price is 0.6, quantity demanded is 600, total revenue = 600 * 0.6 = 360. When price is 0.2, the quantity demanded is 800, total revenue = 0.2 *...

See full answer below.

#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

from

Chapter 3 / Lesson 54Learn what price elasticity is. Discover how to find price elasticity of demand, study examples of price elasticity, and examine a price elasticity graph.

#### Related to this Question

- The table gives the demand schedule for peanuts. When the price of peanuts falls from $1.60 to $1.20 a packet, what is the change in total revenue? Over the price range of $1.20 and $1.60, the demand
- The table below gives changes that occur in the market for peanut butter. Fill in the table below indicating whether the given change shifts the demand or supply curve and if that curve shifts rightward or leftward.
- The table below shows individual demand schedules for a market. A. What will be the market demand if the price is $1.00 and $2.00? B. What will happen to the market demand if the price increases from $1.00 to $1.50? C. Whose demand does not conform to the
- A table showing the relationship between prices and the quantity of that commodity demanded is known as? A. Demand B. Demand table C. Demand curve D. Demand schedule
- The table shows the demand and supply schedules for calculators, If the quantity demanded of calculators decreases by 20 per hour at each price, the new price of a calculator is $
- a. Based on this demand schedule, set up a graph of the demand curve and the corresponding total revenue curve. b. Calculate the price elasticity of demand for each price range using the midpoints formula.
- The table below shows the demand schedule for a product produced by a monopolist. |Price| $8| $7| $6| $5| $4| $3| $2 |Quantity| 5| 6| 7| 8| 9| 10| 12 For a single-price monopolist, the marginal revenue associated with increasing sales from 5 to 6 units is
- The inverse demand for tires is: P = 30 + 0.00025I - 0.5Q_D. The current market price is $11 and the average income (I) is $10,000. a. Calculate the markets total demand. b. Calculate the market's consumer surplus. Draw the demand curve and label the axes
- The table above gives the demand for a monopolist's output. Between which two quantities is demand elastic? a. 6 and 5 b. 5 and 4 c. 3 and 2 d. 4 and 3
- The table below indicates the demand and supply schedules for oil in the United States. Compute the arc price elasticity of demand for a price change from $18 to $20. Is the demand elastic or inelastic?
- The table shows the demand and supply schedules for milk. A drought decreases the quantity supplied by 30 cartons a day at each price. 1) At the initial equilibrium price, will there be a shortage or
- Given the following data on gasoline supply and demand, complete the Market Total row for each table. Quantity demanded (gallons per day) Price per gallon$5.00$4.00$3.00$2.00$1.00 Al12345 Bet
- The table above shows the demand schedules for the caviar of two individuals (Ari and Sonia) and the rest of the market. At a price of $55, the quantity demanded in the market would be:
- Here is some data on the demand for marshmallows: |Price |Quantity |$ 10 |100 |$ 8 |300 |$ 6 | 700 |$ 4 | 1300 |$ 2 |2200 (a.) Is demand elastic or inelastic in the $6-$8 price range? How do you know? (b.) If the table represents the demand faced
- Demand and Supply Balance Table: Coffee Prices in Saudi Riyal per pound. |Price in SAR|Quantity Demanded (in bags)|Quantity Supplied (in bags) |5|200,000|80,000 |6|180,000|120,000 |7|160,000|160,000 |8|140,000|200,000 a.) Draw the supply and demand curve
- Refer to the table above. With the demand schedule shown by columns (2) and (3), in a long-run equilibrium: A) The price will equal average total cost. B) The total cost will exceed total revenue. C
- The table below shows the demand and supply schedule for chocolate. ||Price (per pound)||Quantity Supplied (pounds)||Quantity Demanded (pounds) |$7|80|30 |$6|70|45 |$5|60|60 |$4|50|75 |$3|40|90 |$2|30|105 |$1|20|120 1. The equilibrium price is $_________
- Given the demand data, complete the following table by computing total revenue at each of the prices. Calculate the price elasticity of demand between each set of prices using the midpoint formula. Do
- The table below shows Media Cable's demand table, total revenue, and marginal revenue at each price. Media Cable's marginal cost per cable package is $60. What is the profit-maximizing quantity and price for Media Cable? |Price ($) |Amount Demanded |Total
- Along a demand curve, the price changes from 60 to 70. This causes the quantity demanded to change from 70 to 65. a. Calculate the demand curve and the inverse demand curve. b. Calculate the price e
- Along a demand curve, the price changes from 60 to 70. This causes the quantity demanded to change from 70 to 65. A) Calculate the demand curve and the inverse demand curve. B) Calculate the price ela
- The table shows the demand and supply schedules for bread. What are the equilibrium price and equilibrium quantity of bread?
- The accompanying table shows the price and monthly demand for barrels of gosum berries in Gondwanaland. A. Using the midpoint method (show your work), calculate the price elasticity of demand when the price of a barrel of gosum berries rises from $10 to $
- A demand schedule is a numerical tabulation of a. prices and quantities supplied. b. costs and quantities demanded. c. prices and quantities demanded. d. incomes and quantities demanded.
- The table shows the demand and supply schedules for shampoo. If the price is $6 a bottle, there is a _____ of shampoo. So the price of a bottle of shampoo _____, the quantity demanded _____ and the quantity supplied _____. The market moves to equilibrium.
- The tables shows the demand supply schedules of pretzels. What is the market equilibrium in the pretzel market? The equilibrium price is $_ a bag. The equilibrium quality is _ bags a day. Price (dolla
- As price declines, quantity demanded rises but quantity supplied does not change. Draw the supply and demand curves that represent this state of affairs.
- A monopolist faces the following demand curve listed in the table below: Price/Quantity ($10, 5), ($9, 10), ($8, 16), ($7, 23), ($6, 31), ($5, 45), ($4, 52), ($3, 60) The monopoly has total fixed cost
- The following table shows the demand schedule for a particular good. Refer to the table. Using the midpoint method, when price rises from $8 to $12, the price elasticity of demand is A. 2.33 B. 1.5 C. 1 D. 0.4
- Cost-push inflation occurs when: a. the aggregate demand curve shifts leftward while the aggregate supply curve is fixed. b. the aggregate supply curve shifts leftward while the aggregate demand curve is fixed. c. the aggregate demand curve shifts rightwa
- Suppose a firm with a monopoly faces the following demand schedule and can produce with total costs as provided in the table: Quantity of Output Price Total Costs 0 $80 $30 1 $70 $50 2 $60 $70 3 $50
- If peanut butter and jelly are complements, as the price of jelly goes up: a. the supply of peanut butter goes up b. the supply of peanut butter goes down c. the demand for peanut butter goes up d. the demand for peanut butter goes down
- Below are the supply and demand schedules for fresh coffee in Vancouver. A. What is the equilibrium price of coffee? How many cups of coffee will be exchanged at this price? B. Using the information in the above table, graph the demand and supply for coff
- The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. If the quantity of real domestic output demanded decreased by $500 and the quantity of real domestic output supplied increased by $500 at each pric
- The table above shows the demand schedule for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $4, what would the quantity demanded in the market be? A) 40 poun
- Cost-push inflation is a situation in which the: a. Aggregate demand curve shifts rightward, b. Short-run aggregate supply curve shifts rightward, c. Short-run aggregate supply curve shifts leftward, d. Aggregate demand curve shifts leftward.
- The table below shows the demand and supply schedule for money Interest rate,%Demand for money,$billionsSupply for money,$billions 81 0 30 7 20 30 6 30 30 5 40 30 4 50 30 (a) Graph the demand for and
- Total revenue is equal to: A. price plus quantity. B. price times quantity. C. quantity divided by price. D. the elasticity of demand times price.
- Aggregate demand is the total quantity of output: a. Demanded if the economy is in equilibrium, b. Demanded at alternative price levels in a given time period, c. Producers are willing and able to supply at alternative price levels, d. Consumers actually
- The table below shows the demand and supply schedules for wool (in thousands of tonnes per year) in Economy XYZ . Assume that the demand increases by 60 and supply increases by 50% at every price. What are the new values for equilibrium price and quantity
- The demand and supply functions for sweatshirts (the basic grey kind) are as follows: (TABLE) a. Graph the demand and supply functions for sweatshirts and find the equilibrium price and quantity. b. What effect will an increase in the price of gym shoes (
- If both the demand and supply curves in a competitive market shift to the left, one can predict the direction of quantity change but not of price. If the supply curve shifts to the left and the demand
- On a supply and demand diagram, show equilibrium price, equilibrium quantity, and the total revenue received by producers.
- Refer to the table above. If the price of Garden burgers is $12, the price will: a. Remain constant because the market is in equilibrium. b. Increase because there is excess demand in the market. c. I
- In moving along a stable demand curve, which of the following is not held constant? a. the prices of substitute goods b. the prices of complementary goods c. consumer incomes d. price expectations e. the price of the product for which the demand curve is
- Concerning the price elasticities of supply and demand for commodities, empirical estimates suggest that most commodities have: a. inelastic supply schedules and inelastic demand schedules. b. inelastic supply schedules and elastic demand schedules. c. el
- A price below the equilibrium price and quantity between demand and supply will lead to a. surpluses. b. shortages. c. no change in markets. d. underground markets. e. both b and d. f. none of the above.
- Refer to the following table showing a demand schedule for this question. If price rises from $350 to $400, what is the elasticity of demand over this range? A. -0.625 B. -1.0 C. -1.67 D. -0.07 E. -5.0
- 1) Complete the table below. 1a) Is the table you completed above a demand schedule or supply schedule? 2) Which of the following curves does Country A have? i) A perfectly inelastic supply curve ii
- The demand for a product is Q = 800 - 5P and supply is Q = 100 + 2P. a) What is the market-clearing price and quantity? b) Consumers complain that this price amounts to price gouging and successfully
- Graph the demand, MR, MC, and ATC curves. The following table summarizes the weekly sale and cost situation confronting a monopolist. |Price|Quantity Demanded |Total Revenue |Marginal Revenue| Total
- Market demand for a given year is QD = 31,622,776.60?P^-1.25. Solving the function for price yields inverse demand: P = 1,000,000?Q^-0.8. Therefore, marginal revenue is MR = 200,000?Q^-0.8. If the
- Cost-push inflation occurs when: a. the aggregate supply curve shifts rightward. b. the aggregate demand curve shifts leftward while the aggregate supply curve is fixed. c. the aggregate supply curve shifts leftward while the aggregate demand curve is fix
- The demand for yams is given by q=5000-10p^2, where q is in pounds of yams and p is the price of a pound of yams. At a price of $2 per pound, what is the total revenue for the yam farmer?
- The price of a commodity in terms of another commodity is: a. the law of demand b. the money price c. a substitute d. the relative price
- Given the demand function Q = 200 - 2P - P_A + 0.1Y^2 where P = 10, P_A = 15, and Y = 100, find (a) the price elasticity of demand (b) the cross-price elasticity of demand (c) the income elasticity of demand Estimate the percentage change in demand if P_A
- 1. Graphs: (1) Use a graph to demonstrate the shifts in the supply/demand and (2) write the change in the equilibrium price and quantity in the space provided. A. What will happen to the market for Su
- A change in the expected price level shifts A. the aggregate demand curve. B. the short-run aggregate supply curve, but not the long-run aggregate supply curve. C. the long-run aggregate supply curve, but not the short-run aggregate supply curve. D. both
- Use the table below to answer the following question. Table 1.2. Price Quantity Demanded Quantity Supplied $ 1.00 1.000 200 $ 2.00 800 500 $3.00 600 600 $4.00 400 800 $5.00 300 1,000 Suppose that the demand for this product fell so that at every p
- The aggregate demand for good X is Q = 20 - P. If the price rises from P = $4 to P = $5, what is the change in consumer surplus? A) $5.50. B) $15.50. C) $16. D) $4.50.
- The table below shows the demand and supply schedules for wool (in thousands of tonnes per year) in Economy XYZ . Assume that the demand increases by 60 at every price. Determine the new quantity demanded at every price. | Price ($) | 100 | 200 | 300 |
- Industry supply and demand are given by: Q_D = 1000 - 2P and Q_S = 3P. A) What is the equilibrium price and quantity? B) At a price of $100, will there be a shortage or a surplus, and how large will it be? C) At equilibrium calculate the point price elast
- There is a shortage in a market for a product when: a. the current price is lower than the equilibrium price. b. supply is less than demand. c. demand is less than supply. d. quantity demanded is lower than quantity supplied.
- The demand curve for widgets is P = 120 - 1.5Q a) What is the equation for total revenue? b) What is the equation for marginal revenue? c) At what level of output is total revenue maximized and what is the corresponding price? d) What is the value of
- When you move along a demand curve: A. income and the price of the good are held constant. B. all non-price determinants of demand are held constant. C. only price is held constant. D. all determinant
- The table shows the demand and supply schedules for shampoo. 1. Draw a demand curve and a supply curve using the numbers in the table. 2. If the price is $14 a bottle, there is a {Blank} of shampoo, so the price of a bottle of shampoo {Blank), the quantit
- A change in the expected price level shifts: a. the aggregate-demand curve. b. the short-run aggregate-supply curve, but not the long-run aggregate-supply curve. c. the long-run aggregate-supply curve, but not the short-run aggregate-supply curve. d. b
- A change in the expected price level shifts: a. the aggregate-demand curve. b. the short-run aggregate-supply curve, but not the long-run aggregate-supply curve. c. the long-run aggregate-supply curve, but not the short-run aggregate-supply curve. d.
- Hot Air Balloon Rides is a single price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Suppose the government taxes Hot
- Demand and Supply TV Schedule Total Price of TVs |Total Price of TVs In US $ |Quantity demanded |Quantity |600|0|60 |500|10|50 |400|20|40 |300|30|30 |200|40|20 |100|50|10 |0|60|0 A) Under n
- A change in _ _ _ _ _ _ would cause a shift in the short-run aggregate supply curve. aggregate demand the quantity of real output supplied the price level commodity prices
- For a straight-line, downward-sloping demand curve, total revenue is maximized a. where demand is price-elastic. b. at the midpoint of the demand curve. c. where demand is price-inelastic. d. at the horizontal intercept of the demand curve. e. None o
- A commodity has a demand of Q = 12 - P, and a supply of Q = - 6 + P. Make three tables, each showing the market equilibrium. Unambiguously indicate the price and quantity combination that will be the
- Market demand is given as Qd = 200 - 3P. Market supply is given as Qs = 2P + 100. Draw the curves and calculate the price and quantity in equilibrium. What would result if the market price were $30?
- When the price of fangos is $930, 3160 are demanded. When the price of fangos is $340, 7880 are demanded. Assume the demand for fangos is a straight line. 1. Calculate the price, quantity, marginal revenue, and P/MR when the elasticity of demand is -2.6.
- The table below shows the demand and supply schedules for mouse pads a. What is the market equilibrium? b. If the price of a mouse pad is $7.00, describe the situation in the market. Explain how market equilibrium is restored. c. What is the market equil
- Using the cases of elastic demand and inelastic demand, discuss the impact of total revenue on these demand curves.
- Along a linear demand curve, total revenue is maximized A. where the slope of a line from the origin to the demand curve is equal to the elasticity. B. where the elasticity is -1. C. near the quantity axis intercept. D. near the price axis intercept. E. w
- Along a linear demand curve, total revenue is maximized A. where the slope of a line from the origin to the demand curve is equal to the elasticity. B. where the elasticity is -1. C. near the quantity axis intercept. D. near the price axis intercept.
- The demand schedule below shows your marginal willingness to pay for kiwis. Kiwis cost $2,00 each at the market. Figure 1 a.) Fill in the table b.) Graph your kiwi demand in figure 1 c.) How many k
- The following table summarizes the supply and the demand for euros: Using the previous table: a. Graph the supply and demand curves for euros. b. Determine the equilibrium exchange rate. c. Determine what the effect of a fixed exchange rate at $0.10 per e
- The table below shows a split market with two demand curves D_1=8-Q and D_2=14-1.5Q. The firm has a consistent marginal cost of $2 and fixed costs of $10. What is the profit-maximizing quantity? a. 0 b. 1 c. 2 d. 3 e. 4 f. 5 g. 6 h. 7 i. 8 j. None of the
- Does a change price lead to a movement along the demand curve or shift in the demand curve?
- A price-taking firm faces a: A) perfectly inelastic demand. B) downward-sloping marginal revenue curve. C) downward-sloping supply curve. D) perfectly elastic demand. E) downward-sloping demand curve.
- Along a straight-line demand curve, total revenue reaches a maximum in the range where A. demand is elastic. B. demand is inelastic. C. demand is unitary elastic. D. supply is elastic. E. supply is inelastic.
- Given: Q_s = 2 + 10P and Q_d = 8 - 2P^2, a) find the equilibrium price and output. b) Graph the demand and supply curves.
- Oyster crackers are a complement for clam chowder. If the price of clam chowder falls, the quantity of clam chowder demanded, which the demand for oyster crackers. Because of the change in the equilibrium quantity of oyster crackers, the demand for wheat
- The demand and supply schedules are given as follows: Using this schedule: A) Determine the demand equation and the supply equation. B) What is the intercept of the demand equation? What is the slope
- A change in the equilibrium price level: a. will lead to a shift in the aggregate supply curve. b. will lead to a shift in the aggregate demand curve. c. reflects a shift in the aggregate demand curve and/or aggregate supply curve. d. will always lead t
- The demand curve is downward sloping because: a. price and quantity have a direct relationship. b. price and quantity have an inverse relationship. c. price is always constant. d. demand is based on supply.
- Use the table below to answer the following question. Table 4.1.1 Demand schedule for good A. Quantity demanded (units) Price (dollars per unit) 9.00 0 8.00 2,000 7.00 4,000 6.00 6,000 5.00 8,000 4.00 10,000 3.00 12,000 2.00 14,000 1.00 16,
- You own a buffet restaurant. You currently charge $5 per person for everyone. A. What is your current total revenue for both groups? B. Which market has more elastic demand? C. Which market has more inelastic demand? D. If you charge $8.00 for adults and
- A firm faces a demand and cost as given in table below: Complete table |QTY|Price|Total Cost| | | | |0|21|50 | | | | |1|20|66 | | | | |2|19|81 | | | | |3|18|95 | | | | |4|17|109 | | | | |5|16|125 |
- The following table shows the cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run. Under monopolistic competition, a typica
- Use the following data to draw supply and demand curves on the accompanying graph. Price $ 8 7 6 5 4 3 2 1 Quantity demanded 2 3 4 5 6 7 8 9 Quantity supplied 10 9 8 7 6 5 4 3 (a) What is the equilibrium price? (b) If a minimum price (price floor) of $6 i
- Draw a supply and demand graph at equilibrium. Shade in the consumer surplus. Shade in the producer surplus. Show that if the market price is higher than the equilibrium price, there is less total economic surplus.
- Consider the following demand schedule. ||Price||Quantity demanded||Elasticity coefficient |$25|20 |20|40|_________ |15|60|_________ |10|80|_________ |5|100|_________ What is the price elasticity of demand between: a) P = $25 and P = $20? b) P = $20 and
- The demand for bobbles can be written as Q = 11,000 - 8P. 1. Calculate the price, quantity, total revenue, and marginal revenue when the elasticity of demand is -2.2. 2. Calculate the price, quantity, total revenue, and elasticity of demand when MR = $60.