[answered] Calculate the PED for a particular style of Tom's shoe

?

A. Calculate the PED for a particular style of Tom's shoes if there is a price decrease from \$100 to \$50 and the quantity demanded increases from 2,500 to 10,000 pairs. (Use a diagram to help clarify your answer)

B. Is this product elastic or inelastic? Does this answer support what we've learned about elasticity and what we might expect for a pair of Tom's shoes? Briefly explain your answer.?

A)

Price elasticity of demand (PED) = percentage change in quantity demanded/ percentage change

in price

= [Q2-Q1/Q1]/ [P2-P1/P1)

= [(10,000-2,500)/2500)/ (50-100)/100)

=3/-0.5

=-6

P PED=6 &gt;1 D...

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Sep 18, 2020

Solution~0001005982.zip (25.37 KB)

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

Sep 18, 2020

EXPERT

Tutor

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.