6. Law of Demand 2 Suppose that your demand schedule for pizza is as follows: Price (Dollars) 8 10 12 14 16 Quantity of Pizzas Demanded (Income = $20,000) 40 32 24 16 8 Quantity of Pizzas Demanded (Income = $24,000) 50 45 30 20 If the price of a pizza is $10, your income elasticity of demand is of a pizza is $14, your income elasticity is 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $10 to $12 is and if your income is $24,000. if your income is $20,000 as your income increases from $20,000 to $24,000. However, if the price
6. Law of Demand 2 Suppose that your demand schedule for pizza is as follows: Price (Dollars) 8 10 12 14 16 Quantity of Pizzas Demanded (Income = $20,000) 40 32 24 16 8 Quantity of Pizzas Demanded (Income = $24,000) 50 45 30 20 If the price of a pizza is $10, your income elasticity of demand is of a pizza is $14, your income elasticity is 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $10 to $12 is and if your income is $24,000. if your income is $20,000 as your income increases from $20,000 to $24,000. However, if the price
Principles of Microeconomics
7th Edition
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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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Transcribed Image Text:6. Law of Demand 2
Suppose that your demand schedule for pizza is as follows:
Price
(Dollars)
8
10
12
14
16
Quantity of Pizzas Demanded
(Income = $20,000)
40
32
24
16
8
Quantity of Pizzas Demanded
(Income = $24,000)
50
45
If the price of a pizza is $10, your income elasticity of demand is
of a pizza is $14, your income elasticity is
30
20
12
Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $10 to $12 is
and
if your income is $24,000.
if your income is $20,000
as your income increases from $20,000 to $24,000. However, if the price
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