Use the table and the midpoint formula to answer the following questions. Income
ID: 1246796 • Letter: U
Question
Use the table and the midpoint formula to answer the following questions.Income=$400,000 Income=$300,000 P= $ 10 Qd=120units Qd=60units
P= $ 15 Qd= 80 units Qd= 50 units
a. What is the price elasticity of demand when income is held at constant at $400,000? Is this elastic?
b.What is the price elasticity of demand when income is held at constant at $300,000? Is this elastic? c. What is the income elasticity of demand when price is held constant at $10?
Use the table and the midpoint formula to answer the following questions.
Income=$400,000 Income=$300,000 P= $ 10 Qd=120units Qd=60units
P= $ 15 Qd= 80 units Qd= 50 units
a. What is the price elasticity of demand when income is held at constant at $400,000? Is this elastic?
b.What is the price elasticity of demand when income is held at constant at $300,000? Is this elastic? c. What is the income elasticity of demand when price is held constant at $10?
Explanation / Answer
a)-1 b)-2.2 c)3/7=0.429
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