6. Ch. 5 Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows: Price (Dollars) 8 10 12 14 16 Quantity of Pizzas Demanded (Income = $20,000) 40 32 24 16 8 Quantity of Pizzas Demanded (Income = $24,000) 50 45 30 20 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is pizza is $14, your income elasticity is if your income is $20,000 and as your income increases from $20,000 to $24,000. However, if the price of a

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6. Ch. 5 Problems and Applications Q7
Suppose that your demand schedule for pizza is as follows:
Price
(Dollars)
8
10
12
14
16
Quantity of Pizzas Demanded
(Income = $20,000)
40
32
24
16
8
Quantity of Pizzas Demanded
(Income = $24,000)
50
45
30
20
12
Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is
if your income is $24,000.
If the price of a pizza is $10, your income elasticity of demand is
pizza is $14, your income elasticity is
if your income is $20,000 and
as your income increases from $20,000 to $24,000. However, if the price of a
Transcribed Image Text:6. Ch. 5 Problems and Applications Q7 Suppose that your demand schedule for pizza is as follows: Price (Dollars) 8 10 12 14 16 Quantity of Pizzas Demanded (Income = $20,000) 40 32 24 16 8 Quantity of Pizzas Demanded (Income = $24,000) 50 45 30 20 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is pizza is $14, your income elasticity is if your income is $20,000 and as your income increases from $20,000 to $24,000. However, if the price of a
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