Consider the same apple-juice market. Suppose now, the demand curve a liter of apple-juice is given by: P = 107 - 5QD. i. Calculate the price elasticity of demand of apple-juice when price rises from 55 to 80. Give your answer in two decimal places.

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Chapter5: Elastic And Its Application
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Consider the same apple-juice market. Suppose now, the demand curve a liter of apple-juice is given by: P = 107 - 5QD.

i. Calculate the price elasticity of demand of apple-juice when price rises from 55 to 80.

Give your answer in two decimal places.

After the price rise, the income of a person goes up from 31033 to 46187. The new demand curve is P = 132 - 5QD.

ii. Calculate the income elasticity of demand.

Give your answer in two decimal places.

iii. Due to this increase income, has demand become more or less elastic?
More elastic
Less elastic
Income and demand elasticity are not related
Not enough information given
 
iv. If the increase in income (and the subsequent shift of the demand curve) had occurred before the rise in price, what would the YED be?

Give your answer in two decimal places.

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