Consider the market for a new DVD movie, where the price is initially $8 and 44 copies are sold per day at a superstore, as indicated in the figure to the right. The superstore is considering lowering the price to $4. ] What is the price elasticity of demand between these two prices (use the Midpoint Formula)?

Consider the market for a new DVD movie, where the price is initially $8 and 44 copies are sold per day at a superstore, as indicated in the figure to the right. The superstore is considering lowering the price to $4. ] What is the price elasticity of demand between these two prices (use the Midpoint Formula)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

$4. ]

What is the price elasticity of demand between these two prices (use the Midpoint Formula)?

The price elasticity of demand is nothing. (Enter your response as a real number rounded to two decimal places.)

of
30-
28-
26-
24
22-
20-
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18-
16-
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12-
10-
8-
6-
B.
4-
2-
20 24 2
antity (c
8
12 16 20 24 28 32 36 40 44 48 52
56 60
Quantity (copies per day)
OK
4.
Price (dollars per copy)

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