Suppose that a store decreases the price of cereal from $4.1 to $3.7. As a result, quantity demanded increases from 180 to 240.

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

Your answer should be expressed in absolute value terms.

Hint

Suppose that a store decreases the price of peanut butter from $4.4 to $3.8. As a result, quantity demanded increases from 200 to 250.

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

Hint

Consider the following demand schedule for books.

Suppose that the store increases the price of books from $49 to $56.

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

Make sure that you include a negative sign if necessary.

Hint

Consider the following demand schedule for jeans.

Suppose that the store increases the price of jeans from $30 to $35.

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

Hint

Consider the following demand schedule for jeans.

Suppose that the store increases the price of jeans from $42 to $49.

Based on this information classify the demand curve.

Hint

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: Select the best answer

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

Box 4: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity

Box 5: Select the best answer