Question: 1. (Module 46) a. Refer to the table provided. Use the midpoint formula to calculate the price elasticity of demand for gizmos. Show your work.

1. (Module 46) a. Refer to the table provided. Use the midpoint formula to calculate the price elasticity of demand for gizmos. Show your work. Price per Gizmo (P) Quantity of Gizmos Demanded (Qd b. Using the price elasticity computed in part (a), if price of gizmos decreased by 5%, in what direction and by what percentage will the quantity demanded change? c. Suppose that the demand curve for gizrnos includes a substitution effect and income effect that both predict an increase in quantity of gizmos demanded when the price decreases. Does this mean that gizmos are a normal good or an inferior good? Explain

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