Based On This Chart, Calculate The Own price Point Elasticities Of
This text discusses various formulas and methods to calculate percentage change. It explains that percentage change is the difference between two values divided by the original value, multiplied by 100. It also mentions that if the result is negative, it indicates a decrease. The text provides examples and a calculator to help calculate percentage change.
To calculate the own-price point elasticities of demand, we can use the formula:
Own-price elasticity of demand = (% change in quantity demanded) / (% change in price)
To calculate the percentage change values, we use the following formula:
Percentage change = ((New Value - Old Value) / Old Value) * 100
First, let's calculate the percentage changes for Sony and Microsoft at prices of $299 and $399:
For Sony at $299: Percentage change in quantity demanded = ((11,750,000 - 11,250,000) / 11,250,000) * 100 Percentage change in price = ((299 - 299) / 299) * 100
For Sony at $399: Percentage change in quantity demanded = ((8,750,000 - 8,250,000) / 8,250,000) * 100 Percentage change in price = ((399 - 399) / 399) * 100
Similarly, we can calculate the percentage changes for Microsoft at $299 and $399.
Once we have these percentage change values, we can use them to calculate the own-price point elasticities of demand for both Sony and Microsoft at the given prices.
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