The following table represents the market for disposable cameras. Price ($) Quantitydemanded Quantitysupplied 5.00 15 0 10.00 13 3 15.00 11 6 20.00 9 9 25.00 7 12 30.00 5 15 35.00 3 18 40 1 21 Table 1. i. Use the data in the table above to plot a supply and demand curve ii. Identify the equilibrium price and quantity B. Use the midpoint formula to calculate the price elasticity when demand changes from $20 to $15 and explain if the disposable cameras are elastic or inelastic. C. A local car dealership collects data on changes in demand and consumer income for its cars each year. When the average real income of its customers increased from $80,000 to $100,000 the demand for its cars increased from 15,000 to 20,000 units sold, all other things unchanged. Using the midpoint formula, calculate the income elasticity of demand.
The following table represents the market for disposable cameras.
Price ($) Quantitydemanded Quantitysupplied
5.00 15 0
10.00 13 3
15.00 11 6
20.00 9 9
25.00 7 12
30.00 5 15
35.00 3 18
40 1 21
Table 1.
i. Use the data in the table above to plot a
ii. Identify the
B. Use the midpoint formula to calculate the price elasticity when demand changes from $20
to $15 and explain if the disposable cameras are elastic or inelastic.
C. A local car dealership collects data on changes in demand and consumer income for its
cars each year. When the average real income of its customers increased from $80,000 to
$100,000 the demand for its cars increased from 15,000 to 20,000 units sold, all other
things unchanged. Using the midpoint formula, calculate the income elasticity of demand.
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