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Solve it as soon as possible The table below shows part of the aggregate demand schedule for smart phones in the country of Auentia: Ill.

Solve it as soon as possible

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The table below shows part of the aggregate demand schedule for smart phones in the country of Auentia: Ill. iv. Quantity demanded QB Plot the demand curve for smart phones in Afluentia. Assume demand is linear. Calculate the price elasticity of demand when the price increases from $700 to $900 using the midpoint method. Make your calculations explicit. All else being the same, what is Afluentia's total expenditure on smart phones when the price is 5700? And when the price is $900? All else being the same, should Afluentia's suppliers charge $700 or $900 for a smart phone? Why? Explain briey; show graphically and make your calculations explicit. Now suppose younger people start also buying smart phones in Afluentia. This means 1,000 more smart phones are bought at any given price. As price increases from $700 to $900, is the price elasticity of aggregate demand now greater than, less than, or the same as it was in part (i)? Why? Explain briey. Make any calculations explicit. We now take a longer time period into consideration and look at the market for smart phones in the long run. In the long run the quantity demanded at any given price by all buyers (including the younger ones] is 10% higher. As price increases from $700 to $900, is the price elasticity of demand in the long run greater than, less than, or the same as it was in part (i)? Is it greater than, less than, or the same as it was in part (iii)? Why? Explain briey and show with numbers. Make any calculations explicit. In the long run, all else being the same, should Afluentia's suppliers charge $700 or $900 for a smart phone? Why? Explain briefly; show graphically and make your calculations explicit

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