Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 40 50 10 32 45 12 24 30 14 16 20 16 8 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is if your income is $20,000 and if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is as your income increases from $20,000 to $24,000. However, if the price of a pizza is $12, your income elasticity is

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose that your demand schedule for pizza is as follows:
Price
Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars)
(Income = $20,000)
(Income = $24,000)
8
40
50
10
32
45
12
24
30
14
16
20
16
8
12
Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is
if your income is $20,000 and
if your income is $24,000.
If the price of a pizza is $10, your income elasticity of demand is
as your income increases from $20,000 to $24,000. However, if the price of a
pizza is $12, your income elasticity is
Transcribed Image Text:Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars) (Income = $20,000) (Income = $24,000) 8 40 50 10 32 45 12 24 30 14 16 20 16 8 12 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is if your income is $20,000 and if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is as your income increases from $20,000 to $24,000. However, if the price of a pizza is $12, your income elasticity is
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