Below find a demand schedule for Kim and Kylie (not a fan, just all I could think of) showing the price and quantity of lattes demanded at each price. Please calculate the price elasticity of demand for both Kim and Kylie if the price of lattes rises from $3.50 to $6.00. Please show all your work so if there is a problem we can figure out what happened. Once you have calculated the price elasticity, explain the elastic/inelastic/or unit elastic demand. Once you have determined the elasticities of demand for each person, please explain why the elasticities are what they are. You will have to improvise this answer based on the reading regarding what causes commodities to be more or less elastic.

Two small notes: 1)Your answer is will be a negative number.  In elasticity, the value is absolute.  So you will simply drop the negative sign.  2) The way the font is in the book while explaining the elasticity of demand formula, it kind of looks like you should divide only the denominator x2.  Once you do the division, then divide the result by 2.  It's deceiving due to limits on font.  

 
 

Transcribed Image Text:

Latte's Price Kim Kylie $ 1.00 24 20 $ $ $ 1.50 23 19 2.00 22 18 2.50 21 18 $ $ $ 3.00 20 17 3.50 19 21 4.00 18 19 $ $ $ 4.50 17 17 5.00 16 15 5.50 15 13 $ $ 6.00 14 11 6.50 13 10 7.00 12 9. $ $ $ 7.50 11 8 8.00 10 6. 8.50 9 4 $ 9.00 8 $ 9.50 1 Latte's Price Kim Kylie $ 1.00 24 20 $ $ $ 1.50 23 19 2.00 22 18 2.50 21 18 $ $ $ 3.00 20 17 3.50 19 21 4.00 18 19 $ $ $ 4.50 17 17 5.00 16 15 5.50 15 13 $ $ 6.00 14 11 6.50 13 10 7.00 12 9. $ $ $ 7.50 11 8 8.00 10 6. 8.50 9 4 $ 9.00 8 $ 9.50 1