The college is looking to increase parking revenue by changing the price of parking permits from $40 to $20. Use the data listed below to answer each question. Be sure to post your reply to these questions by the due date in Canvas and reply to two of your classmates using 150 words each. Compare your answers and explain why they are the same or different. Data At the current price of $40 per quarter for a parking permit, the quantity demanded was 400. At a new price of $20 per quarter for a parking permit, the quantity demanded was 600. Questions 1. Describe the demand curve graph for parking permits at the college in terms of downward or upward sloping and steepness. 2. What was the price elasticity of demand for parking permits between the prices of $20 and $40? (use the midpoint formula for price elasticity of demand) Show your work. 3. Is the price elasticity of demand you just calculated greater than one, less than one, or equal to one?

The college is looking to increase parking revenue by changing the price of parking permits from $40 to $20. Use the data listed below to answer each question. Be sure to post your reply to these questions by the due date in Canvas and reply to two of your classmates using 150 words each. Compare your answers and explain why they are the same or different. Data At the current price of $40 per quarter for a parking permit, the quantity demanded was 400. At a new price of $20 per quarter for a parking permit, the quantity demanded was 600. Questions 1. Describe the demand curve graph for parking permits at the college in terms of downward or upward sloping and steepness. 2. What was the price elasticity of demand for parking permits between the prices of $20 and $40? (use the midpoint formula for price elasticity of demand) Show your work. 3. Is the price elasticity of demand you just calculated greater than one, less than one, or equal to one?

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 8PA: The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase:...

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