1. Suppose the price of good x has increased from Php5 to Php10 per unit. Using the illustration below, compute the price elasticity of demand using the midpoint elasticity formula. Is the demand for the good elastic, inelastic or unitary elastic? 10 5 20 25 2. If the price of hamburger increases by 16% and the quantity demanded decreases by 6%, what is the price elasticity of demand? Is it elastic, inelastic or unitary elastic?

1. Suppose the price of good x has increased from Php5 to Php10 per unit. Using the illustration below, compute the price elasticity of demand using the midpoint elasticity formula. Is the demand for the good elastic, inelastic or unitary elastic? 10 5 20 25 2. If the price of hamburger increases by 16% and the quantity demanded decreases by 6%, what is the price elasticity of demand? Is it elastic, inelastic or unitary elastic?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 1SCQ: From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand...

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