Apple’s Price Elasticity

Table of contents

Price Elasticity

Q.: Suppose the price of apples rises from $3 a pound to $3.50 and your consumption of apples drops from 35 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic?

A.: The concept of the price elasticity of demand (characterized by the elasticity coefficient Ed) can give an idea about the responsiveness of the demand to any changes of the price for goods or services.

The demand can be:

  • perfectly inelastic, when a change in price does not cause any changes in quantity demanded (Ed=0),
  • relatively inelastic, when a percentage change in price causes less percentage change in quantity demanded (Ed<1),
  • relatively elastic, when a percentage change in price causes a greater percentage changes in quantity demanded (Ed>1),
  • unitary elastic, when a percentage change in price causes the same percentage change in quantity demanded (Ed=1),
  • perfectly elastic, when a change in price causes total loss of demand (Ed=?).

In terms of an elastic demand, any increase of the price causes decrease in total revenues. Thus, the revenues that seller could receive before the price was increased totaled: TR1 =  35 × 3 = 105 $, and the revenues after the price became $3.5 are: TR2 = 20 × 3.5 = 70 $. TR1 > TR2 in terms of an increase in price. Therefore, the demand is elastic.

To calculate the elasticity coefficient, it is possible to use Symmetric Midpoint Formula, according to which the coefficient Ed can be defined as the ratio of average percentage change in quantity demanded (?Q%) and average percentage change in price (?P%). In our case, midpoint percentage change for quantity is ?Q% = (20-35)/((20+35)/2) = -54.54% , and midpoint percentage change for price is ?P% = (3.5-3)/((3.5+3)/2) = 15.38%. Therefore, Ed = ?Q% / ?P% = -54.4 % / 15.38 % = -3.546. Since | Ed | > 1, the demand is relatively elastic.


  • Abowd, J. M. (1999, May 12). The Concept of Elasticity. Cornell University.
  • Retrieved April 3, 2009: <>.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business and administrative studies
excellent job thank you Your Score 166.25/ 175- A 1. Current Culture 15% of total grade 18.37 Criterion "1. Current Culture" has textual feedback Criterion Feedback I see interesting points, though, in general they are not about the culture.
Customer 452773, June 4th, 2023
thank you so much
Customer 452749, June 10th, 2021
Human Resources Management (HRM)
Customer 452773, July 11th, 2023
Criminal Justice
The paper was not accused of plagiarism and was written very well. I will let you know the grade once it is graded. Thank you
Customer 452671, April 26th, 2021
Business and administrative studies
excellent job
Customer 452773, March 12th, 2023
Business and administrative studies
looks good thank you
Customer 452773, March 3rd, 2023
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
Impressive writing
Customer 452547, February 6th, 2021
Business and administrative studies
Customer 452773, March 3rd, 2023
Human Resources Management (HRM)
excellent job
Customer 452773, June 25th, 2023
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Customer 452591, March 18th, 2021
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp