Suppose the demand schedule for burritos is as follows: Quantity Demanded (Income $30,000) Price Quantity Demanded (Income $90,000) $5 20 25 $6 16 22 $7 12 15 $8 8 10 $9 4 Use the midpoint method to calculate the price elasticity of demand for burritos if the price increases from $7 to $8 for someone with $30,000 of income. 1. Use the midpoint method to calculate the price elasticity of demand for burritos if the price increases from $7 to $8 for someone with $90,000 of income. 2. Is demand for burritos elastic or inelastic for customers earning $30,000? Explain. 3. Is demand for burritos elastic or inelastic for customers earning $90,000? Explain. 4.

Suppose the demand schedule for burritos is as follows: Quantity Demanded (Income $30,000) Price Quantity Demanded (Income $90,000) $5 20 25 $6 16 22 $7 12 15 $8 8 10 $9 4 Use the midpoint method to calculate the price elasticity of demand for burritos if the price increases from $7 to $8 for someone with $30,000 of income. 1. Use the midpoint method to calculate the price elasticity of demand for burritos if the price increases from $7 to $8 for someone with $90,000 of income. 2. Is demand for burritos elastic or inelastic for customers earning $30,000? Explain. 3. Is demand for burritos elastic or inelastic for customers earning $90,000? Explain. 4.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...

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