Suppose that at a price of ₱1,500 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to ₱2,000 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town?
Suppose that at a price of ₱1,500 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to ₱2,000 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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Suppose that at a price of ₱1,500 per month, there are 30,000 subscribers to cable television in Small Town. If Small Town Cablevision raises its price to ₱2,000 per month, the number of subscribers will fall to 20,000. Using the midpoint method for calculating the elasticity, what is the price elasticity of demand for cable TV in Small Town?
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