Suppose that your demand schedule for pizza is as follows: Price Quantity Demanded (income = $20,000) Quantity Demanded (income = $24,000) $8 40 pizzas 50 pizzas 10 32 45 12 24 30 14 16 20 16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of pizza increas
Suppose that your demand schedule for pizza is as follows: Price Quantity Demanded (income = $20,000) Quantity Demanded (income = $24,000) $8 40 pizzas 50 pizzas 10 32 45 12 24 30 14 16 20 16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of pizza increas
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 pizza is as follows:
Price |
Quantity Demanded (income = $20,000) |
Quantity Demanded (income = $24,000) |
$8 |
40 pizzas |
50 pizzas |
10 |
32 |
45 |
12 |
24 |
30 |
14 |
16 |
20 |
16 |
8 |
12 |
- 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 $2000 and (ii) your income is $24000.
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