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Suppose that a store decreases the price of peanut butter from $4 to $3.7. As a result, quantity demanded increases from 180 to 230.

Using the mid-point approach, calculate the percentage change in price.

Make sure that you include a negative sign if necessary.

 

Hint




Suppose that a store decreases the price of peanut butter from $4.2 to $3.6. As a result, quantity demanded increases from 220 to 270.

Using the mid-point approach, calculate the percentage change in quantity demanded.

 

Hint




Suppose that a store increases the price of laundry detergent from $3.8 to $4.4. As a result, quantity demanded decreases from 270 to 190.

Using the mid-point elasticity approach, calculate price elasticity of demand.

Your answer should be expressed in absolute value terms.

 

Hint




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