Question

Problems and Applications Q7

Suppose that your demand schedule for pizza is as follows:

Price	Quantity of Pizzas Demanded	Quantity of Pizzas Demanded
(Dollars)	(Income = $20,000)	(Income = $24,000)
8	40	50
10	32	45
12	24	30
14	16	20
16	8	12

Using the midpoint method, your price elasticity of demand as the price of pizzas increases from $14 to $16 is   if your income is $20,000 and   if your income is $24,000.

If the price of a pizza is $10, your income elasticity of demand is   as your income increases from $20,000 to $24,000. However, if the price of a pizza is $14, your income elasticity is   .

Answer 1