1.1. When the price of a bracelet was $35 each, the jewelry shop sold 18 per month. When it raised the price to $45 each, it sold 12 per month. Using the midpoint method, calculate the price elasticity of demand for bracelets by filling out the table below. Price Quantity Price elasticity of demand $35 18 $45 12
1.1. When the
|
Price |
Quantity |
Price elasticity of demand |
|
$35 |
18 |
|
|
$45 |
12 |
1.2. Last year, Shelley bought 3 pairs of designer jeans when her income was $45,000. This year, her income is $55,000, and she purchased 5 pairs of designer jeans. Using the midpoint formula, calculate the income elasticity of demand by filling out the table below.
|
Income |
Quantity |
Income elasticity of demand |
|
$45,000 |
3 |
|
|
$55,000 |
5 |
1.3. A bakery would be willing to supply 500 bagels per day at a price of $0.50 each. At a price of $0.80, the bakery would be willing to supply 1,100 bagels. Using the midpoint method, calculate the price elasticity of supply for bagels by filling out the table below.
|
Price |
Quantity |
Price elasticity of supply |
|
$0.50 |
500 |
|
|
$0.80 |
1,100 |
1.4. Suppose the cross-price elasticity of demand between hot dogs and mustard is -2.00. If the price of hot dogs increases by 20 percent, what is the percentage change in the quantity of mustard purchased? Fill out the table below.
|
Percentage change in price |
Percentage change in quantity |
Price elasticity of supply |
|
20% |
|
-2.00 |
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