Use the demand curve diagram below to answer the following question. I. What is the own-price elasticity of demand as price increases from N$2 per unit to N$4 per unit? Use the mid-point formula in your calculation. II. Suppose that a 2% increase in price of cabbage results in a 6% decrease in quantity demanded of cabbage. Calculate own-price elasticity of demand. III.If own-price elasticity of demand equals 0.3 in absolute value, then what percentage change in price will result in a 6% decrease in quantity demanded?
Use the demand curve diagram below to answer the following question. I. What is the own-price elasticity of demand as price increases from N$2 per unit to N$4 per unit? Use the mid-point formula in your calculation. II. Suppose that a 2% increase in price of cabbage results in a 6% decrease in quantity demanded of cabbage. Calculate own-price elasticity of demand. III.If own-price elasticity of demand equals 0.3 in absolute value, then what percentage change in price will result in a 6% decrease in quantity demanded?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the demand curve diagram below to answer the following question.
I. What is the own-
II. Suppose that a 2% increase in price of cabbage results in a 6% decrease in quantity demanded of cabbage. Calculate own-price elasticity of demand.
III.If own-price elasticity of demand equals 0.3 in absolute value, then what percentage change in price will result in a 6% decrease in quantity demanded?
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