
MARGINAL UTILITYPRICE RATIO: The ratio of the marginal utility obtained from consuming a good to the price of the good. This ratio is particular important in determining consumer equilibrium, which is reached when the marginal utilityprice ratios are the same for all goods.
Visit the GLOSS*arama




Lesson 11: Elasticity Basics  Unit 3: Measurement

Page: 14 of 25

Topic:
Doing The Numbers: Midpoint



 Our task is to calculate the price elasticity of demand using the midpoint formula.
midpoint elasticity  =  (Q2  Q1) (Q2 + Q1)/2  ÷  (P2  P1) (P2 + P1)/2 
 The values for this formula are P1 = $2.49, Q1 = 5,447 tacos, P2 = $1.99, Q2 = 6,608 tacos.
midpoint elasticity  =  0.19 ÷  0.22  =   0.86 
 This value  0.86 indicates that the a one percent decline in the price of Tacos results in a 0.86 percent increase in quantity demanded.






AVERAGE PRODUCT AND MARGINAL PRODUCT A mathematical connection between average product and marginal product stating that the change in the average product depends on a comparison between the average product and marginal product. If marginal product is less than average product, then average product declines. If marginal product is greater than average product, then average product rises. If marginal product is equal to average product, then average product does not change.
Complete Entry  Visit the WEB*pedia 


GRAY SKITTERY [What's This?]
Today, you are likely to spend a great deal of time searching for a specialty store wanting to buy either throw pillows for your bed or a package of blank rewritable CDs. Be on the lookout for pencil sharpeners with an attitude. Your Complete Scope
This isn't me! What am I?


Helping spur the U.S. industrial revolution, Thomas Edison patented nearly 1300 inventions, 300 of which came out of his Menlo Park "invention factory" during a fouryear period.


"Nothing ever built arose to touch the skies unless some man dreamed that it should, some man believed that it could, and some man willed that it must. "  Charles Kettering, inventor


FCLT Functional Central Limit Theorem


Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback

