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6. Law of Demand 2 Suppose that your demand schedule for pizza is as follows: Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded (Dollars)

6. Law of Demand 2

Suppose that your demand schedule for pizza is as follows:

Price Quantity of Pizzas Demanded Quantity of Pizzas Demanded
(Dollars) (Income = $20,000) (Income = $24,000)
8 40 50
10 32 45
12 24 30
14 16 20
16 8 12

Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $8 to $10 is ?if your income is $20,000 and ? if your income is $24,000.

If the price of a pizza is $10, your income elasticity of demand is ? as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is ? .

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