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Suppose that your demand schedule for burgers is as follows: Price If Income $30,000 If Income $35,000 $7 60 70 $9 50 60 $11 40 50 $13 30 40 $15 20 30 A. (a) Use the standard method to calculate your price elasticity of demand as the price of burgers increases from $7 to $9 if (i) your income is $30,000, and (ii) your income is $35,000. B. Calculate your income elasticity of demand as your income increases from $30,000 to $35,000 if (i) the price is $11, and (ii) the price is $15.

Suppose that your demand schedule for burgers is as follows: Price If Income $30,000 If Income $35,000 $7 60 70 $9 50 60 $11 40 50 $13 30 40 $15 20 30 A. (a) Use the standard method to calculate your price elasticity of demand as the price of burgers increases from $7 to $9 if (i) your income is $30,000, and (ii) your income is $35,000. B. Calculate your income elasticity of demand as your income increases from $30,000 to $35,000 if (i) the price is $11, and (ii) the price is $15.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 1QR
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Suppose that your demand schedule for burgers is as follows: Price If Income $30,000 If Income $35,000 $7 60 70 $9 50 60 $11 40 50 $13 30 40 $15 20 30 A. (a) Use the standard method to calculate your price elasticity of demand as the price of burgers increases from $7 to $9 if (i) your income is $30,000, and (ii) your income is $35,000. B. Calculate your income elasticity of demand as your income increases from $30,000 to $35,000 if (i) the price is $11, and (ii) the price is $15.
Transcribed Image Text:Suppose that your demand schedule for burgers is as follows: Price If Income $30,000 If Income $35,000 $7 60 70 $9 50 60 $11 40 50 $13 30 40 $15 20 30 A. (a) Use the standard method to calculate your price elasticity of demand as the price of burgers increases from $7 to $9 if (i) your income is $30,000, and (ii) your income is $35,000. B. Calculate your income elasticity of demand as your income increases from $30,000 to $35,000 if (i) the price is $11, and (ii) the price is $15.
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