Economic
PFA
Chapter 3 Problem 7-1_Instructions.docx
Grader – Instructions Excel 2016 Project
Chapter 3 Problem 7-1
Project Description:
In this problem, you will investigate the pattern of price elasticity of demand calculated along the demand curve.
Steps to Perform:
Step
Instructions
Points Possible
1
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers.
Start Excel.
0
2
In cell E10, by using relative and absolute cell references, calculate the point price elasticity of demand at the price in cell C10 and the quantity in cell D10. Copy the formula from cell E10 down the column to cell E28.
1
3
In cells H31 and J31, by using cell references, enter the range of prices at which the demand curve is inelastic.
Note: The range of prices should go from the lowest to the highest value.
1
4
In cell H32, by using a cell reference, enter the price at which the demand curve has unitary elasticity.
1
5
In cells H33 and J33, by using cell references, enter the range of prices at which the demand curve is elastic.
Note: The range of prices should go from the lowest to the highest value.
1
6
Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed.
0
Total Points
4
Created On: 07/05/2019 1 Chapter 3 Problem 7-1
Reddy Reddy_Chapter_3_Problem_7-1_Start.xlsx
Problem
Problem 7-1
Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers.
The marketing department of Acme Inc. has estimated the following demand function for its popular carpet deodorizer, Freshbreeze: Q = 100 5p, where Q is the quantity of an 8 oz box sold (in thousand units) and p the price of an 8 oz. box.
Q = 100 – 5 p
Use Excel to calculate the point price elasticity of demand, , for price, p = 1, 2, 3,, 19.
p Q
$1 95
$2 90
$3 85
$4 80
$5 75
$6 70
$7 65
$8 60
$9 55
$10 50
$11 45
$12 40
$13 35
$14 30
$15 25
$16 20
$17 15
$18 10
$19 5
Determine the prices at which the demand curve is elastic, inelastic and has unitary elasticity moving from low prices to high prices.
The demand curve is inelastic at prices from to .
The demand curve has unitary elasticity at price .
The demand curve is elastic at prices from to .
Instructions
Project Description:
In this problem, you will investigate the pattern of price elasticity of demand calculated along the demand curve.
Steps to Perform:
Step Instructions Points Possible
1 Use a cell reference or a single formula where appropriate in order to receive full credit. Do not copy and paste values or type values, as you will not receive full credit for your answers.
Start Excel. 0
2 In cell E10, by using relative and absolute cell references, calculate the point price elasticity of demand at the price in cell C10 and the quantity in cell D10. Copy the formula from cell E10 down the column to cell E28. 1
3 In cells H31 and J31, by using cell references, enter the range of prices at which the demand curve is inelastic.
Note: The range of prices should go from the lowest to the highest value. 1
4 In cell H32, by using a cell reference, enter the price at which the demand curve has unitary elasticity. 1
5 In cells H33 and J33, by using cell references, enter the range of prices at which the demand curve is elastic.
Note: The range of prices should go from the lowest to the highest value. 1
6 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 0
