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× | operwellumecollege.com/course.html?courseld. 144441 · Course Home EC 350 MyEconLab Spring 2018 Section 2 Homework: Chapter 5 Homework Save Score: 0 of 1 pt 12 of 25 (22 complete) Score: 74%, 18.5 of 25 pts End of Chapter 3.7 EQuestion Help Use the graph to the right for Yolanda's Frozen Yogurt Stand to answer the questions that follovw 4.00- Use the midpoint formula to calculale the price elasticity of demand for D, behween point A and point C and the 325 price elasticity of demand for D2 between point A and point 8 300- Price elasticity of demand for D,- Enter your response rounded to two decimal places Be sure to include the minus sign.) lp 113 138 0 000 500 1000 1500-2000-2500 Quantity (cones per day) Enter your answer in the answer box and then click Check Answer ined Final Chec Cear All 4pamini Waiting for da F12 F10 BocExplanation / Answer
Elasticity of demand = % change in quantity demanded / % change in price
P1 = 2.50, P2 = 2, Q1 = 100, Q2 = 138
% change in quantity demanded = (Q2 - Q1)/Q1 x 100 = (138 - 100)/100 x 100 = 38%
% change in price = (2 - 2.50)/2.50 x 100 = - 0.50/2.50 x 100 = - 20%
Elasticity of demand = 38/(- 20) = - 1.90
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