Just problem 13

10. Given the following demand schedule, calculate the price elasticity of demand for a price change from S40 to $35. Use the midpoint formula and show all work for full credit. (C2 points) Price () Quantity Demanded 45 40 35 30 25 20 15 10 15 30 45 60 75 90 105 120 135 0 11. Using the schedule above, calculate the elasticity of demand when price changes from S25 to $20. Again, show all of your work. Why are the calculated elasticities different? What factors may explain these differences. (2 points) 12. Farmer Bob sells organic tomatoes at the Haile Village Farmer's Market every week. After talking with some of his customers, he believes that by lowering the price of tomatoes, he can increase total revenue. What is Farmer Bob assuming about the price elasticity of demand for organic tomatoes? What features of Farmer Bob's product might inform this assumption? (2 points 13. Given the following own-price elasticities, what do you know about the good? Be sure to interpret the elasticities in your explanation. (4 points) Good 1 Asparagus Cantaloupe Milk Bottled Water Own Price Elasticity 0.58 0.17