Question: Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four

Graph the accompanying demand data, and then use the midpoint formula for E d to determine price elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.

Product Quantity

Price Demanded

$5 ……………………… 1

4 ……………………….. 2

3 ……………………….. 3

2 ……………………….. 4

1 ……………………….. 5

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