1. Mark's demand for chicken is given as follows: Price of Chicken Quantity demanded per week Quantity demanded per week (Income = P800) (Per kilo) (Income = P500) 10 kilos P100 12 kilos 110 8 11 120 10 130 9. a. Compute for his price elasticity of demand as the price of chicken falls from P120 to P110 if his income is P500. (Use the Midpoint Method) b. Compute for his price elasticity of demand as the price changes from P120 to P130 if his income is P800. (Use the Midpoint Method) c. Compute his income elasticity of demand as his income changes from P500 to P800 is the price of chicken is P100.

1. Mark's demand for chicken is given as follows: Price of Chicken Quantity demanded per week Quantity demanded per week (Income = P800) (Per kilo) (Income = P500) 10 kilos P100 12 kilos 110 8 11 120 10 130 9. a. Compute for his price elasticity of demand as the price of chicken falls from P120 to P110 if his income is P500. (Use the Midpoint Method) b. Compute for his price elasticity of demand as the price changes from P120 to P130 if his income is P800. (Use the Midpoint Method) c. Compute his income elasticity of demand as his income changes from P500 to P800 is the price of chicken is P100.

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 2PA

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