econ &Atilde;&para;dev

# econ Ã¶dev - Mustafa Erkan TEBAY 030301002...

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Mustafa Erkan ÜTEBAY 030301002 Question 5) a) Price=10 Quantity demanded= 4 Price elasticity of demand= Δ% Quantity demand/ Δ% Price =4/10=0,4 inelastic b) Price=20 Quantity demanded= 15 Price elasticity of demand= Δ% Quantity demand/ Δ% Price =15/20=0,75 inelastic c) Price=5 Quantity demanded= 5 Price elasticity of demand= Δ% Quantity demand/ Δ% Price =5/5=1 unit elasticity d) Price=6 Quantity demanded= 10 Price elasticity of demand= Δ% Quantity demand/ Δ% Price =10/6=1,66>1 elastic Question 6) Price Quantity 11 10 10 20 9 30 8 40 7 50 6 60 5 70 4 80 3 90 a) Use midpoint formula to calculate the elasticity between a price of 10\$ and 11\$. ed= ΔQ/(Q 1 +Q 2 /2) = (20-10)/(20+10/2) = -7= ا 7 ا = 7 < 1 elastic ΔP/(P 1 +P 2 /2) (10-11)/(21/2) b) Calculate the elasticity between 3\$ and 4\$ ed= ΔQ/(Q

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## This note was uploaded on 12/03/2009 for the course INDUSTRIAL IE 307 taught by Professor Arzuakyüz during the Spring '09 term at Atılım Üniversitesi.

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econ Ã¶dev - Mustafa Erkan TEBAY 030301002...

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