When connecting U dropped the price of a gigabyte of data from $20 to $16, Jamming Joe's quantity demanded increased from 2 gigabytes to 3 gigabytes of data - a 40 percent increase in quantity demanded, according to the midpoint formula. Joe, what if your own price elasticity for gigabytes of data? The answer is: In absolute value, my own price elasticity is about 1.8. I don't know the formula.
When connecting U dropped the price of a gigabyte of data from $20 to $16, Jamming Joe's quantity demanded increased from 2 gigabytes to 3 gigabytes of data - a 40 percent increase in quantity demanded, according to the midpoint formula. Joe, what if your own price elasticity for gigabytes of data? The answer is: In absolute value, my own price elasticity is about 1.8. I don't know the formula.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![When connecting U dropped the price
of a gigabyte of data from $20 to $16,
Jamming Joe's quantity demanded
increased from 2 gigabytes to 3
gigabytes of data - a 40 percent
increase in quantity demanded,
according to the midpoint formula.
Joe, what if your own price elasticity for
gigabytes of data?
The answer is: In absolute value, my
own price elasticity is about 1.8.
I don't know the formula.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F675baeb6-e327-4788-a127-a838e49dadb4%2F470c886c-3a12-4da6-9bf2-a4d96cef3f7d%2Fvlssmae_processed.png&w=3840&q=75)
Transcribed Image Text:When connecting U dropped the price
of a gigabyte of data from $20 to $16,
Jamming Joe's quantity demanded
increased from 2 gigabytes to 3
gigabytes of data - a 40 percent
increase in quantity demanded,
according to the midpoint formula.
Joe, what if your own price elasticity for
gigabytes of data?
The answer is: In absolute value, my
own price elasticity is about 1.8.
I don't know the formula.
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