This preview shows pages 1–5. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Income Elasticity of demand: Percentage change in quantity demanded due to a 1% change in income. Group Problem Two groups of demand: Graph and provide the formula for market demand. Where does the elasticity of market demand = 1? } , 4 100 max{ } , 200 max{ p q p q o b== Group Problem University football tickets are sold to maximize revenue. There are 100,000 seats. Demand is: 1.Calculate the revenue maximizing price and quantity. What is the elasticity of demand at this point? 2.Redo the problem when demand increases to: p p D 000 , 10 000 , 200 ) (= p p D 000 , 10 000 , 300 ) (=...
View Full
Document
 Spring '11
 MURRAY

Click to edit the document details