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 10 12 14 16 40 32 24 16 8 50 1882 45 30 20 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 is 0.47 if your income is $20,000 and 2.13 if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is 1.86 as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is 1.22

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 10 12 14 16 40 32 24 16 8 50 1882 45 30 20 Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 is 0.47 if your income is $20,000 and 2.13 if your income is $24,000. If the price of a pizza is $10, your income elasticity of demand is 1.86 as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is 1.22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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