Answered: 10 Y 8. 7 Demand 1 10 20 30 40 50 60 70…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Using the midpoint method

The following graph shows two known points (X and Y) on a demand curve for tomatoes.

0102030405060708090100109876543210PRICE (Dollars per pound)QUANTITY (Thousands of pounds of tomatoes)DemandXYSlope: -0.05

According to the midpoint method, the price elasticity of demand for tomatoes between point X and point Y is approximately (0.05 / 0.2 / 0.25 / 5) , which suggests that th demand for tomatoes is (elastic / inelastic ) between points X and Y.

10
Y
7
Demand
1
10
20
30
40
50
60
70
80
90
100
QUANTITY (Thousands of pounds of tomatoes)
3.
2.
PRICE (Dollars per pound)

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