1. Last Friday, the price of pizza was Ph 100 a box, and Michael was willing to buy 10 boxes. Today, the price has gone up to Php 150 a box, and Michael is now willing to buy 8 boxes. Is Michaels demand for pizza elastic or inelastic? What is Michael's elasticity of demand?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 3QR
icon
Related questions
Question

N⁵

1. Last Friday, the price of pizza was Ph 100 a box, and Michael was willing to buy 10 boxes. Today,
the price has gone up to Php 150 a box, and Michael is now willing to buy 8 boxes. Is Michaels
demand for pizza elastic or inelastic? What is Michael's elasticity of demand?
Transcribed Image Text:1. Last Friday, the price of pizza was Ph 100 a box, and Michael was willing to buy 10 boxes. Today, the price has gone up to Php 150 a box, and Michael is now willing to buy 8 boxes. Is Michaels demand for pizza elastic or inelastic? What is Michael's elasticity of demand?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax