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Suppose that a store decreases the price of cereal from $4.1 to $3.6. As a result, quantity demanded increases from 180 to 270.

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

Your answer should be expressed in absolute value terms.

 

Suppose that a store decreases the price of peanut butter from $4.3 to $3.6. As a result, quantity demanded increases from 210 to 230.

Based on this information, find the price elasticity, which you can use to classify the demand curve as price elastic, unit elastic or inelastic.

 

Consider the following demand schedule for bags.

PriceQuantity Demanded
$6376
$12346
$18316
$24286
$30256
$36226
$42196
$48166

Suppose that the store increases the price of bags from $30 to $36.

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

Make sure that you include a negative sign if necessary.

 

Consider the following demand schedule for bags.

PriceQuantity Demanded
$10389
$20369
$30349
$40329
$50309
$60289
$70269
$80249

Suppose that the store increases the price of bags from $60 to $70.

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

 

Consider the following demand schedule for jeans.

PriceQuantity Demanded
$9381
$18354
$27327
$36300
$45273
$54246
$63219
$72192

Suppose that the store increases the price of jeans from $18 to $27.

Based on this information classify the demand curve.