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Suppose that a store decreases the price of cereal from $4.2 to $3.5. As a result, quantity demanded increases from 190 to 260.
Using the mid-point approach, calculate the percentage change in price.
Make sure that you include a negative sign if necessary.
Suppose that a store decreases the price of peanut butter from $4.5 to $3.4. As a result, quantity demanded increases from 180 to 230.
Using the mid-point approach, calculate the percentage change in quantity demanded.
Suppose that a store increases the price of peanut butter from $3.9 to $4.1. As a result, quantity demanded decreases from 230 to 180.
Using the mid-point elasticity approach, calculate price elasticity of demand.
Your answer should be expressed in absolute value terms.
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
Box 2: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity
Box 3: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity