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Suppose the demand for your demand schedule for DVDs is as follows: Price Quantity Demanded $ 18 400 DVDs $20 320 DVDs a) Use the

Suppose the demand for your demand schedule for DVDs is as follows:

Price

Quantity Demanded

$ 18

400 DVDs

$20

320 DVDs

a) Use the mid-point Method to calculate your price elasticity of demand as the price of DVDs increases from $18 to $20.

b) If a 20 percent increase in the price of DVDs causes a 25 percent reduction in the number of boxes of DVDs demanded, what is the price elasticity of demand for DVDs? Id the demand for DVDs elastic or inelastic?

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