Below find a demand schedule for Kim and Kylie (not a fan, just all I could think of) showing price and quantity of latte's demanded at each price. Please calculate the price elasticity of demand for both Kim and Kylie if the price of latte's rises from $3.50 to $6.00. Please show all your work so if there is a problem we can figure out what happened. Once you have calculated the price elasticity explain who's demand is elastic / inelastic / or unit elastic. Once you have determined the elasticities of demand for each person, explain a reason why the elasticities are what they are. You will have to improvise this answer based on the reading regarding what causes commodities to be more or less elastic. Two small notes: 1)Your answer is will be a negative number. In elasticity, the value is absolute. So you will simply drop the negative sign. 2) The way the font is in the book while explaining the elasticity of demand formula, it kind of looks like you should divide only the denominator x2. Once you do the division, then divide the result by 2. It's deceiving due to limits on font.
Chapter 4
Below find a demand schedule for Kim and Kylie (not a fan, just all I could think of) showing price and quantity of latte's demanded at each price. Please calculate the
Two small notes: 1)Your answer is will be a negative number. In elasticity, the value is absolute. So you will simply drop the negative sign. 2) The way the font is in the book while explaining the elasticity of demand formula, it kind of looks like you should divide only the denominator x2. Once you do the division, then divide the result by 2. It's deceiving due to limits on font.
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