The figure shows the price and quantity supplied of long-distance phone calls.Quantity supplied(millions ofminutes per day)Price(centsper minute)10200204003060040800a. Calculate the elasticity of demand when the price falls from 40¢ to 30¢ a minute.b. The average price is 20¢ a minute

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The figure shows the price and quantity supplied of long-distance phone calls. Price (cents per minute) Quantity supplied (millions of minutes per day) 10 200 20 400 30 600 40 800

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure shows the price and quantity supplied of long-distance phone calls.
Quantity supplied
(millions of
minutes per day)
Price
(cents
per minute)
10
200
20
400
30
600
40
800
a. Calculate the elasticity of demand when the price falls from 40¢ to 30¢ a minute.
b. The average price is 20¢ a minute

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