This preview shows page 1. Sign up to view the full content.
Unformatted text preview: work in the real world. 5. Step 1: Calculating average quantity and average price: Average quantity = 1300 2 131 , 1 469 , 1 Average price = 5 . 102 , 27 $ 2 454 , 29 $ 751 , 24 $ Step 2: Calculating percentage change in quantity demanded and percentage change price: Percentage change in quantity demanded = % 26 100 300 , 1 131 , 1 469 , 1 Percentage change in price = % 4 . 17 100 5 . 102 , 27 454 , 29 $ 751 , 24 $ Step 3: Divide the percentage change in the quantity demanded by the percentage change in price to arrive at the price elasticity for demand curve: Price elasticity of demand = 5 . 1 % 4 . 17 % 26 Demand for Pace University is therefore elastic. Total revenue fell during this time from $36,359,219 to $33,312,474....
View
Full
Document
This note was uploaded on 09/29/2010 for the course ECON W1155 taught by Professor Gulati during the Fall '08 term at Columbia.
 Fall '08
 Gulati
 Economics

Click to edit the document details