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Suppose that your demand schedule for DVDs is as follows: a. Use the midpoint method to calculate your price elasticity

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Suppose that your demand schedule for DVDs is as follows:

Suppose that your demand schedule for DVDs is as follows:

a. Use the midpoint method to calculate your price elasticity of demand as the price of DVDs increases from $8 to $10 if
(i) Your income is $10,000 and
(ii) Your income is $12,000.
b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if
(i) The price is $12 and
(ii) The price is$16.

Transcribed Image Text:

Quantity Demanded Quantity Demanded (income $10,000) (income $12,000) Price S 8 10 12 14 40 DVDs 32 24 16 50 DVDs 45 30 20

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Principles of economics

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: December 14, 2012 06:49:38
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