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Suppose that a store decreases the price of laundry detergent from $4.3 to $3.4. As a result, quantity demanded increases from 210 to 250.

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 cereal from $4.3 to $3.5. As a result, quantity demanded increases from 190 to 230.

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

 

Suppose that a store increases the price of cereal from $3.9 to $4.4. As a result, quantity demanded decreases from 240 to 200.

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

Your answer should be expressed in absolute value terms.

 


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