Suppose a company raises its price from $20 to $24, and its quantity demanded falls from 10,000 units to 9,000 units. Using the midpoint method, the price elasticity of demand is

0.5

Explanation:

A company raise its price from $20 to $24

Change in price = 24-20/20

= 4/20

= 0.2

The quantity demanded falls from 10,000 units to 9,000 units

Change in quantity= 9,000-10,000/10,000

= -1000/10000

= -0.1

Therefore the price elasticity of demand can be calculated as follows

= -0.1/0.2

= 0.5

Hence the price elasticity of demand is 0.5

its bc they probably don't know your answer to the real question but want points from your dumb ones.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.