Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Step 1
As we answer the 3 sub parts and no particular sub part is mentioned so we will answer first 3 sub parts. Please resubmit the question specifying the sub part you'd like to be answered.
a)
To draw the demand curve for given schedule:
Step 2
b)
For the price elasticity of demand using the mid point formula:
The elasticity of demand can be calculated as-
Moving from $5 to $4:
Moving from $4 to $3:
Moving from $3 to $2:
Moving from $2 to $1:
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