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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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