Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 30000) Demanded (Income: 50000)---------------------------------------------------------------------------------------------------10 32 90 20 16 40 40 8 15 80 4 7 160 2 3 ----------------------------------------------------------------------------------------------------a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000.b) Calculate the income elasticity of demand for CDs when price is 160.c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain. 4. i) Suppose that your demand schedule for CDs is as follows:Price (Tk.) QuantityQuantityDemanded (Income: 50000)Demanded (Income: Tk. 30000)1032902016404015804716023a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000.b) Calculate the income elasticity of demand for CDs when price is 160.c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain.

Here, it the given table, various level of prices, and quantity demanded of CDs at two different…

Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 30000) Demanded (Income: 50000) --------------------------------------------------------------------------------------------------- 10 32 90 20 16 40 40 8 15 80 4 7 160 2 3 ---------------------------------------------------------------------------------------------------- a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000. b) Calculate the income elasticity of demand for CDs when price is 160. c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain

Suppose that your demand schedule for CDs is as follows: Price (Tk.) Quantity Quantity Demanded (Income: Tk. 30000) Demanded (Income: 50000) --------------------------------------------------------------------------------------------------- 10 32 90 20 16 40 40 8 15 80 4 7 160 2 3 ---------------------------------------------------------------------------------------------------- a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000. b) Calculate the income elasticity of demand for CDs when price is 160. c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...

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Question

Suppose that your demand schedule for CDs is as follows:

Price (Tk.) Quantity Quantity

Demanded (Income: Tk. 30000) Demanded (Income: 50000)

---------------------------------------------------------------------------------------------------

10 32 90

20 16 40

40 8 15

80 4 7

160 2 3

----------------------------------------------------------------------------------------------------

a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000.
b) Calculate the income elasticity of demand for CDs when price is 160.
c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain.

4. i) Suppose that your demand schedule for CDs is as follows:
Price (Tk.) Quantity
Quantity
Demanded (Income: 50000)
Demanded (Income: Tk. 30000)
10
32
90
20
16
40
40
15
80
4
7
160
2
3
a) Calculate the price elasticity of demand for CDs when price increases from 40 to 80 and income is Tk.50000.
b) Calculate the income elasticity of demand for CDs when price is 160.
c) How will the total revenue change when price of CDs decreases and the income is Tk. 30000, explain.

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