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