Question No 2: Suppose that your demand schedule for pizza is as follows: Price ($) Quantity demanded (income = $20 000) Quantity demanded (income = $24 000) 8 40 pizza 50 pizza 10 32 45 12 24 30 14 16 20 (a): Using the midpoint method, calculate your price elasticity of demand as the price of pizza increases from $8 to $10 if (i) your income is $20 000, and (ii) your income is $24 000. (b): Using the midpoint method, calculate your income elasticity of demand as your income increases from $20 000 to $24 000 if (i) the price is $12, and (ii) the price is $16.
Question No 2: Suppose that your demand schedule for pizza is as follows: Price ($) Quantity demanded (income = $20 000) Quantity demanded (income = $24 000) 8 40 pizza 50 pizza 10 32 45 12 24 30 14 16 20 (a): Using the midpoint method, calculate your price elasticity of demand as the price of pizza increases from $8 to $10 if (i) your income is $20 000, and (ii) your income is $24 000. (b): Using the midpoint method, calculate your income elasticity of demand as your income increases from $20 000 to $24 000 if (i) the price is $12, and (ii) the price is $16.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section19.1: Elasticity: Part 1
Problem 1ST: On Tuesday, the price and quantity demanded are 7 and 120 units, respectively. Ten days later, the...
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Question No 2: Suppose that your
(income = $20 000)
Quantity demanded
(income = $24 000)
8 40 pizza 50 pizza
10 32 45
12 24 30
14 16 20
(a): Using the midpoint method, calculate your price elasticity of demand as the price of
pizza increases from $8 to $10 if (i) your income is $20 000, and (ii) your income is $24 000.
(b): Using the midpoint method, calculate your income elasticity of demand as your
income increases from $20 000 to $24 000 if (i) the price is $12, and (ii) the price is $16.
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