Based on the schedule given calculate the price elasticity of demand (using the midpoint method) when the price of pencil rises from $4.50 to $5.50, when average income is $20,000. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400

Based on the schedule given calculate the price elasticity of demand (using the midpoint method) when the price of pencil rises from $4.50 to $5.50, when average income is $20,000. * Quantity demanded (average income is $20,000) 2,400 1,600 800 Quantity demanded (average income is $30,000) 3,600 2,800 2,400 1,800 Pencil price $4.50 $5.50 $6.50 $7.50 400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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