- 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 $20,000 and (ii) your income is $24,000.
- 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.
- 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 $20,000 and (ii) your income is $24,000.
- 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.
Related textbook solutions
Related questions
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 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 _______.
