Question
Questions INSTRUCTIONS: This assignment consists of TWO(2) sections. SECTION A: Application Question (20%) - Answer ALL questions. The following table illustrates your demand schedule for
Questions
INSTRUCTIONS:
This assignment consists of TWO(2) sections.
SECTION A: Application Question (20%) - Answer ALL questions.
The following table illustrates your demand schedule for apples at given prices and incomes.
| Price per apple ($) | Quantity demanded (Income = $10,000) | Quantity demanded (Income = $12,000) |
| 1 | 10 | 14 |
| 2 | 8 | 12 |
| 3 | 6 | 10 |
| 4 | 4 | 8 |
| 5 | 2 | 6 |
| 6 | 1 | 4 |
Use the mid-point method to calculate your price elasticity of demand as the price of an apple increases from $4 to $5 at your income of $12,000. Explain the result. (5 marks)
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Technology Ventures From Idea To Enterprise From Idea To Enterprise
Authors: Richard C Dorf, Byers
5th Edition
1259875997, 9781259875991
