Suppose that your demand schedule for CD is as follows: Price Quantity demand (income =$10 000) Quantity demand (income =$12 00 $8 40 50 10 32 45 12 24 .30 14 16 20 16 8 12 a) Calculate your price elasticity of demand as the price of CD increases from $8 to $10 your income is $10 000 and ii) your income is $12 000. b) Calculate your income elasticity of demand as your income increase from $10 000 to 000 if i) the price is $12 and ii) the price is $16. QB-1

Suppose that your demand schedule for CD is as follows: Price Quantity demand (income =$10 000) Quantity demand (income =$12 00 $8 40 50 10 32 45 12 24 .30 14 16 20 16 8 12 a) Calculate your price elasticity of demand as the price of CD increases from $8 to $10 your income is $10 000 and ii) your income is $12 000. b) Calculate your income elasticity of demand as your income increase from $10 000 to 000 if i) the price is $12 and ii) the price is $16. QB-1

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 37P: The supply of paintings by Leonardo Da Vinci, who painted the Mona Lisa and The Last Supper and died...

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