Question
The table below provides price and output information for Angela’s weekly demand curve for cheeseburgers. Use...
The table below provides price and output information for
Angela’s weekly demand curve for cheeseburgers. Use the information
in the table to answer the questions below, and give all answers to
two decimals.
| Price (per cheeseburger) |
Number of Cheeseburgers Demanded (per week) |
| $8 | 3 |
| $6 | 5 |
a. Calculate the price elasticity of demand if the price falls from $8 to $6. Do not use the midpoint formula.
b. Calculate the price elasticity of demand if the price increases
from $6 to $8. Do not use the midpoint formula.
c. Use the midpoint method to calculate the price elasticity of
demand.
Homework Answers
Answer #1
Answer:
(a) Price elasticity of demand = - 2.66
(b) Price elasticity of demand = - 1.2
(c) Price elasticity of demand = - 1.75
EXPLANATION:
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
= 
= 
= 
= - 2.66
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
=
= 
= 
= - 1.2
Price elasticity of demand(midpoint method)
= 
= 
= 
= - 1.75
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