Chat with us, powered by LiveChat I need some excel work done for statistics and macroeconomics Price plays a significant role in quantity demanded and quan - School Writers

I need some excel work done for statistics and macroeconomics Price plays a significant role in quantity demanded and quan

I need some excel work done for statistics and macroeconomics

Price plays a significant role in quantity demanded and quantity supplied. Consumers and sellers respond differently to changes in the price of different types of goods and the situation. To measure the responsiveness of consumers and sellers to changes in the price of a good, some rules of thumb are given.  These rules of thumb are said to influence price elasticity of demand and supply making the curves to vary. The rules of thumb that affect price elasticity of demand are:

·         Availability of a close substitute

·         Necessities versus luxuries

·         Definition of the market

·         Time zone

For price elasticity of supply, they are:

·         Flexibility of sellers to change in quantity of good produced

·         Time period

 

Consequently, price elasticity can be unit, elastic, and inelastic demand and supply.  In Problem #2, you will need to compute in Excel to determine price elasticity of demand and supply showing the varying demand and supply curve.

View this video to complete the questions below:

Answer the questions below by using the following demand schedule:

 

Table 2 Data for Problem 2

Price

Quantity Demanded

Quantity Supplied

$13

585

1305

$12

635

1130

$11

665

980

$10

695

930

$9

705

840

$8

730

730

$7

750

630

$6

780

480

$5

830

360

$4

930

260

 

 

·         Graph, plot the data in Table 2 making sure the graph is properly formatted and labeled.

·         Use the Excel template to calculate the elasticity of demand between one point and the next using the mid-point formula. That is, plot A-to-B, B-to-C etc. Upon plotting the graph, determine the price elasticity of each value. For instance, it could be price elasticity, price inelastic, or unit elastic.

o   Cell H3: =((D4-D3)/AVERAGE(D4:D3))/((C4-C3)/AVERAGE(C3:C4))

o   Cell I3: =IF(ABS(H3)>1,"Elastic",IF(ABS(H3)<1,"Inelastic","Unit Elastic"))

·         Using the same Excel template, calculate the elasticity of supply between one point and the next using the midpoint formula. That is, plot A-to-B, B-to-C, etc.  Upon plotting the graph, determine the price elasticity of each value. For instance, it could be price elasticity, price inelastic, or unit elastic.

o   Cell J3: =((E4-E3)/AVERAGE(E3:E4))/((C4-C3)/AVERAGE(C4,C3))

o   Cell K3: =IF(ABS(J3)>1,"Elastic",IF(ABS(J3)<1,"Inelastic","Unit Elastic"))

 


 


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