Based on the schedule given calculate the price elasticity of demand (using the midpoint method) when the price of pencil rises from $4.50 to $5.50, when average income is $20,000. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400
Based on the schedule given calculate the price elasticity of demand (using the midpoint method) when the price of pencil rises from $4.50 to $5.50, when average income is $20,000. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400
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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