A decrease in the price of eggs from $1.50 to $1.30per dozen resulted in an increase in egg purchasesin two cities. In Philadelphia, daily egg purchasesincreased from 6000 to 8000 dozens; in nearbyDover, Delaware, daily egg purchases increasedfrom 300 to 400 dozens. The price elasticity ofdemand is thereforeQuestion 3 options:the same in Philadelphia as in Dover.greater in the Dover than in Philadelphiaaffected by population differences in differentmarkets.lower in the Dover than in Philadelphia

Given: Initial price of eggs = $1.50 New price = $1.30 ∆P = 1.50 - 1.30 = $0.20 Philadelphia :-…

A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases n two cities. In Philadelphia, daily egg purchases ncreased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased rom 300 to 400 dozens. The price elasticity of demand is therefore Question 3 options: the same in Philadelphia as in Dover. greater in the Dover than in Philadelphia affected by population differences in different markets. lower in the Dover than in Philadelphia

A decrease in the price of eggs from $1.50 to $1.30 per dozen resulted in an increase in egg purchases n two cities. In Philadelphia, daily egg purchases ncreased from 6000 to 8000 dozens; in nearby Dover, Delaware, daily egg purchases increased rom 300 to 400 dozens. The price elasticity of demand is therefore Question 3 options: the same in Philadelphia as in Dover. greater in the Dover than in Philadelphia affected by population differences in different markets. lower in the Dover than in Philadelphia

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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