Set all variables to their baseline values.

1) What's the percent change in the price of spaghetti between prices of $18 and $20? [Hint: Use the midpoint method.]

Set all variables to their baseline values.

2) What's the percent change in the QUANTITY of spaghetti when the price changes from $18 to $20? Set all variables at their baseline values.

3) What's the elasticity of demand for spaghetti between the prices of $18 and $20?

0 50 100 150 Reset to baseline Print Questions V Go to answer | CURRENT VALUES Price of spaghetti $18.00 Income $20,000 _ Price of tacos $6.00 Price of wine $20.00 Spaghetti demand 26.94 BASELINE VALUES Income $20,000 Price of tacos $6.00 Price of wine $20.00 Spaghetti demand 26.94 50 100 150 Reset to baseline Print Questions V Go to answer CURRENT VALUES Price of spaghetti $20.00 Income $20,000 _ Price of tacos $6.00 Price of wine $20.00 Spaghetti demand 22.72 BASELINE VALUES Income $20,000 Price of tacos $6.00 Price of wine $20.00 Spaghetti demand 22.72