A hypothetical demand schedule for comic books in a small town is provided below.

a. Fill in the table and calculate the price elasticity of demand over each price range. Be sure to use average prices and quantities when computing the percentage changes.
b. Plot the demand curve and show the elasticities over the different ranges of the curve.
c. Explain why demand is more elastic at the higher prices.

Transcribed Image Text:

Percent Total Percent Change in Elasticity Quantity Expen- Change Quantity of Price Demanded diture in Price Demanded Demand $11 7