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beigefish857Lv1
6 Oct 2020
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 _______.
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 _______.
Raushan RajLv8
11 Dec 2020