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6 Oct 2020
Suppose that your demand schedule for pizza is as follows:
Price
Quantity Demanded (Income=$20,000)
Quantity Demanded(Income = $24,000)
$8
40 pizza
50 pizza
10
32
45
12
24
30
14
16
20
16
8
12
a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from $8 to $10 if (i) your income is $20,000and (ii) your income is $24,000.
b.Calculate your income elasticity of demand as your income increases from $20,000 to $24,000 if (i) the price is 12 and (ii) the price is $16.
Suppose that your demand schedule for pizza is as follows:
Price | Quantity Demanded (Income=$20,000) |
Quantity Demanded(Income = $24,000) |
$8 | 40 pizza | 50 pizza |
10 | 32 | 45 |
12 | 24 | 30 |
14 | 16 | 20 |
16 | 8 | 12 |
a. Use the midpoint method to calculate your price elasticity of demand as the price of pizza increases from $8 to $10 if (i) your income is $20,000and (ii) your income is $24,000.
b.Calculate your income elasticity of demand as your income increases from $20,000 to $24,000 if (i) the price is 12 and (ii) the price is $16.
Retselisitsoe PokothoaneLv10
27 Oct 2020