Question

Price Quantity Demanded $0 50 $2 40 $4 30 $6 20 $8 10 a. Using the...

Price Quantity Demanded $0 50 $2 40 $4 30 $6 20 $8 10 a. Using the midpoint method, calculate the price elasticity of demand between $4 and $6? b. Between two quantities of 30 to 20, is demand elastic, inelastic, or unit elastic? Show the work.

Homework Answers

Answer #1

Answer (a) price elasticity of demand is 1

(b) Demand is unit elastic

Unit elastic demand, the proportion change in demand is equal to the proportion change in price.

All the calculations are attached below

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