.......... 6. Law of Demand 2Suppose that your demand schedule for pizza is as follows:PriceQuantity of Pizzas Demanded Quantity of Pizzas Demanded(Dollars)(Income = $20,000)(Income = $24,000)40501032451224301416201612Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 isv if your income is $20,000 andif your income is $24,000.If the price of a pizza is $12, your income elasticity of demand isas your income increases from $20,000 to $24,000. However, if the priceof a pizza is $16, your income elasticity is

Use the below formula to find the elasticity: Ed = Q2-Q1Q1+Q2/2P2-P1P1+P2/2

6. Law of Demand 2 Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 40 50 10 32 45 12 24 30 14 16 20 16 12

6. Law of Demand 2 Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 40 50 10 32 45 12 24 30 14 16 20 16 12

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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6. Law of Demand 2
Suppose that your demand schedule for pizza is as follows:
Price
Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars)
(Income = $20,000)
(Income = $24,000)
40
50
10
32
45
12
24
30
14
16
20
16
12
Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 is
v if your income is $20,000 and
if your income is $24,000.
If the price of a pizza is $12, your income elasticity of demand is
as your income increases from $20,000 to $24,000. However, if the price
of a pizza is $16, your income elasticity is

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