Question

suppose that your demand schedule for pizza is as follows:

Price	Quantity of Pizzas Demanded	Quantity of Pizzas Demanded
(Dollars)	(Income = $20,000)	(Income = $24,000)
8	40	50
10	32	45
12	24	30
14	16	20
16	8	12

1. Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $10 to $12 is______if your income is $20,000 and________ if your income is $24,000.

 

2. If the price of a pizza is $10, your income elasticity of demand is ______ as your income increases from $20,000 to $24,000. However, if the price of a pizza is $12, your income elasticity is _______.