The owner of a produce store found that when the price of a head of lettuce was raised from 50 cents to $1, the quantity sold per hour fell from 18 to 8. The arc elasticity of demand for lettuce is .

-1.15

Explanation:

the arc elasticity of demand is calculated by dividing % change in quantity demanded by % change in price:

midpoint Q = (8 + 18) / 2 = 13

midpoint P = (0.50 + 1) / 2 = 0.75

% change in quantity demanded = (Q2 – Q1) / midpoint Q = (8 – 18) / 13 = -0.77

% change in price = (P2 – P1) / midpoint P = (1 – 0.5) / 0.75 = 0.67

PED = -0.77 / 0.67 = -1.15

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.

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;