Using the demand schedule below, plot the demand curve on the graph and answer four questions about demand and elasticity:

(a) Illustrate the demand curve on the following graph.
(b) How much will consumers spend on shoes at the price of
(i) $120
(ii) $100
(iii) $80
(iv) $60
(v) $40?
(c) As the price drops from $120 to $100 a pair, is demand elastic, unitary elastic, or inelastic?
(d) As the price drops from $80 to $60 a pair, is demand elastic, unitary elastic, or inelastic?
(e) As the price drops from $60 to $40 a pair, is demand elastic, unitary elastic, or inelastic?

Transcribed Image Text:

Price (рег pair) | Quantity demanded $120 $100 $80 $60 $40 (in pairs per year) 6. 6 10 15 26 20 140 120 100 80 60 40 20 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 QUANTITY OF SHOES (pairs per year) PRICE (per pair)