Suppose the price of pork fell from $3.00 to $2.50 per pound. Over the same period, the CPI (which reflects the price of all consumer goods) increased by 10%. What is the percentage change in price (%) that we should use to calculate the price elasticity of demand for beef? (Hint: Recall that we use the midpoint formula to calculate elasticities.)

Suppose the price of lettuce rises by 20%. As a result, the quantity of lettuce demanded decreases by 5%. What is (the absolute value of) the price elasticity of demand for lettuce?

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Calculating the Relevant Price Change 1 Pork Price Change While the price of pork decreased from 300 ... View the full answer