5. a. Using the data found in Question 1, calculate the elasticity of demand and elasticity of supply at each price change in the market for gold picture frames using the midpoint formula for both supply and demand. Because you are calculating the change between two levels, you will have 7 calculations for the 8 prices. mark Price Quantity $45 $60 $95 $160 Demanded $185 1,800,00 $100 1,300,000 $210 1,575,000 $125 1,395,000 1,330,000 1,085,000 900,000 745,000 Elasticity of Quantity Demand Supplied 645,000 740,000 865,000 910,000 1,395,000 1,750,000 1,925,000 2,100,000 Elasticity of Supply
5. a. Using the data found in Question 1, calculate the elasticity of demand and elasticity of supply at each price change in the market for gold picture frames using the midpoint formula for both supply and demand. Because you are calculating the change between two levels, you will have 7 calculations for the 8 prices. mark Price Quantity $45 $60 $95 $160 Demanded $185 1,800,00 $100 1,300,000 $210 1,575,000 $125 1,395,000 1,330,000 1,085,000 900,000 745,000 Elasticity of Quantity Demand Supplied 645,000 740,000 865,000 910,000 1,395,000 1,750,000 1,925,000 2,100,000 Elasticity of Supply
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter5: Elasticity
Section: Chapter Questions
Problem 35P: The equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to...
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