Question
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
- 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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