1. Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 12000) Demanded (Income: 16000) 10 32 90 20 16 40 40 15 80 4 7 160 2 3 a) Calculate the price elasticity of demand for CDs when price increases from 20 to 40 and income is Tk.16000. b) Calculate the income elasticity of demand for CDs when price is 10. c) How will the total revenue change when price of CDs decreases and the income is 12000, explain.
1. Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 12000) Demanded (Income: 16000) 10 32 90 20 16 40 40 15 80 4 7 160 2 3 a) Calculate the price elasticity of demand for CDs when price increases from 20 to 40 and income is Tk.16000. b) Calculate the income elasticity of demand for CDs when price is 10. c) How will the total revenue change when price of CDs decreases and the income is 12000, explain.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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