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 $10 to $12 is (0.64/1.57/0.45/2.20) if your income is $20,000 and (2.20/0.64/1.57/0.45)if your income is $24,000.

If the price of a pizza is $12, your income elasticity of demand is (2.20/0.08/1.22/0.06) as your income increases from $20,000 to $24,000. However, if the price of a pizza is $16, your income elasticity is (1.22/0.08/2.20/0.06).