Question
1. Go through the following table, and answer the questions given below it: Sections Situation Before Change in Price Situation After Change in Price Price
1. Go through the following table, and answer the questions given below it:
| Sections | Situation Before Change in Price | Situation After Change in Price | ||
| Price | Quantity Dem. | Price | Quantity Dem. | |
| A | 50 | 6,000 | 65 | 4,500 |
| B | 180 | 14,000 | 210 | 10,000 |
| C | 30 | 5,000 | 20 | 7,000 |
- Calculate the PED for section A using Percentage or Ratio Method.
- Calculate the PED for sections B using Arc or Mid-point Method.
- Calculate the PED for sections C using Total Outlay Method.
- Show all the situations in graph
- Interpret the PED values of each situation; what do they mean?
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Principles Of Econometrics
Authors: R Hill
4th Edition
1118136969, 9781118136966
