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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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