Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Human Resource Management People Data And Analytics

Authors: Talya Bauer, Berrin Erdogan, David E. Caughlin, Donald M. Truxillo

1st Edition

154437772X, 978-1544377728

Students also viewed these Economics questions

Question

Define culture in the context of clinical psychology.

Answered: 1 week ago