Joe When Connecting U dropped the price of a gigabyte of data from $20 to $16, Jamming Joe's quantity demanded increased from 2 gigabytes to 3 gigabytes of data - a 40 percent increase in quantity demanded, according to the midpoint formula. Curious Cally Joe, what is your own price elasticity for gigabytes of data? Curious Cally In absolute value, my own price elasticity is about 1.8. In absolute value, my own price elasticity is about 0.56. In absolute value, my own price elasticity is about 1.2.
Joe When Connecting U dropped the price of a gigabyte of data from $20 to $16, Jamming Joe's quantity demanded increased from 2 gigabytes to 3 gigabytes of data - a 40 percent increase in quantity demanded, according to the midpoint formula. Curious Cally Joe, what is your own price elasticity for gigabytes of data? Curious Cally In absolute value, my own price elasticity is about 1.8. In absolute value, my own price elasticity is about 0.56. In absolute value, my own price elasticity is about 1.2.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...
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Transcribed Image Text:rcentage Change in Quantity:
Joe
((New Quantity- Old Quantity)/((New Qu
Midpoint Formula for Percentage Change in Price:
((New Price- Old Price)/ ((New Price +O
When Connecting U dropped the price
of a gigabyte of data from $20 to $16,
Jamming Joe's quantity demanded
increased from 2 gigabytes to 3
gigabytes of data - a 40 percent
increase in quantity demanded,
according to the midpoint formula.
Curlous
Cally
Joe, what is your own price elasticity
for gigabytes of data?
Curious
Cally
In absolute value, my own price elasticity is about 1.8.
In absolute value, my own price elasticity is about 0.56.
In absolute value, my own price elasticity is about 1.2.
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