Question

2. Using the midpoint formula, calculate elasticity for each of the following changes in demand.

	P1	P2	Q1	Q2
Demand for: a. Cashews	$7.50 per	$6.00	800 pounds	1,000
	pound	per pound	per month	pounds
				per month
b. Portable	$80	$120	75 per year	65 per
hard drive				year
(1 terabyte)
c. 12-gauge	0.60 per	0.45 per	2,500 lineal	5,000
copper wire	lineal	lineal	feet per	lineal feet
	foot	foot	week	per week
d. Toothpaste	$2.00 per	$2.40 per	10 tubes	9 tubes
	tube	tube	per month	per month

Answer 1