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Can you help me in part C. I already answered part A & B Suppose the demand schedule for Hard Drives is as follows: Price

Can you help me in part C. I already answered part A & B

  1. Suppose the demand schedule for Hard Drives is as follows:

Price Quantity Demanded income = $10,000 Quantity Demanded income = $12,000
$ 8 40 50
$10 32 45
$12 24 30
$14 16 20
$16 8 12

Part A: Use the MPM to calculate your PED as the price of hard drives decreases from

$10 to $8 if (i) your income is $10,000 and (ii) your income is $12,000.

If income is $10,000: Ed = 1 (Unity elastic)

If income is $12,000: Ed = 0.47 < 1 (Inelastic)

Part B: Use the MPM to calculate your PED as the price of hard drives decreases from

$14 to $12 if (i) your income is $10,000 and (ii) your income is $12,000.

If income is $10,000: Ed = 2.6 > 1 (Elastic)

If income is $12,000: Ed = 2.6 > 1 (Elastic)

Part C: Do you see any similarities between the data outcomes from question 1 to question 2? If so, comment on the situation.

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