Solve the following problems. Show your solutions. Suppose that the demand and supply for Maria's shirts are as follows: PRICE QUANTITY DEMANDED QUANTITY SUPPLIED P8 40,000 20,000 10 32,000 30,000 12 24,000 45,000 14 16,000 50,000 16 8,000 63,000 a. Calculate price elasticity of demand and supply as the price of shirts increase from P12 to P14. b. Calculate income elasticity of demand as income increases from P50,000 to P58,000 if the price is P10 and P12, respectively.

Solve the following problems. Show your solutions. Suppose that the demand and supply for Maria's shirts are as follows: PRICE QUANTITY DEMANDED QUANTITY SUPPLIED P8 40,000 20,000 10 32,000 30,000 12 24,000 45,000 14 16,000 50,000 16 8,000 63,000 a. Calculate price elasticity of demand and supply as the price of shirts increase from P12 to P14. b. Calculate income elasticity of demand as income increases from P50,000 to P58,000 if the price is P10 and P12, respectively.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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