TRAL 432 Elasticities Worksheet There are two parts to this assignment. Complete both parts. Part A. Average Arc Elasticities Assume the following simple demand schedule and then answer the questions. P P₁ 100 P₂-95 10 12 Q₁ Q₂ Q 1) What is the average are price elasticity of demand between price $100 and $95? Is it elastic, inelastic, or unitary elastic at these prices? Show your work. 2) What is the average are price elasticity of demand for the following points on the same curve? Is it elastic, inclastic, or unitary elastic at these prices? Show your work. (Pl, Q₁)=(10, 46) (P2, Q2) (15, 44) 3) Given this is the same curve, why are the average are price elasticities of demand different?
TRAL 432 Elasticities Worksheet There are two parts to this assignment. Complete both parts. Part A. Average Arc Elasticities Assume the following simple demand schedule and then answer the questions. P P₁ 100 P₂-95 10 12 Q₁ Q₂ Q 1) What is the average are price elasticity of demand between price $100 and $95? Is it elastic, inelastic, or unitary elastic at these prices? Show your work. 2) What is the average are price elasticity of demand for the following points on the same curve? Is it elastic, inclastic, or unitary elastic at these prices? Show your work. (Pl, Q₁)=(10, 46) (P2, Q2) (15, 44) 3) Given this is the same curve, why are the average are price elasticities of demand different?
Chapter1: Making Economics Decisions
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Transcribed Image Text:TRAL 432 Elasticities Worksheet
There are two parts to this assignment. Complete both parts.
Part A. Average Arc Elasticities
Assume the following simple demand schedule and then answer the questions.
P
P₁ 100
P₂-95
10 12
Q₁ Q₂
Q
1) What is the average are price elasticity of demand between price $100 and $95? Is it
elastic, inelastic, or unitary elastic at these prices? Show your work.
2) What is the average are price elasticity of demand for the following points on the same
curve? Is it elastic, inclastic, or unitary elastic at these prices? Show your work.
(Pl, Q₁)=(10, 46)
(P2, Q2) (15, 44)
3) Given this is the same curve, why are the average are price elasticities of demand
different?
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