Question 4

Refer to the table below to answer the questions. Use the mid-point formula.

ITEM / PRICE / DEMAND

A 10 1

B 9 2

C 8 3

D 7 4

E 6 5

4.1) If the price of a gardenburger increases from RM8 to RM10, the price elasticity of demand equals ________ and demand is ________.

4.2) If the price of a gardenburger increases from RM6 to RM8, the price elasticity of demand equals ________ and demand is ________.

4.3) If the price of a gardenburger decreases from RM7 to RM6, the price elasticity of demand equals ________, and the decrease results in a(n) ________ in total revenue.

4.4) If the price of a gardenburger decreases from RM9 to RM8, the price elasticity of demand equals ________ and demand is ________.

4.5) If the price of a gardenburger decreases from RM8 to RM7, the price elasticity of demand equals ________ and demand is ________.

4.6) If the price of a gardenburger increases from RM7 to RM9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.