Module 3 Chp 20. Elasticity

Module 3 Chp 20. Elasticity - a. Determine the price...

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a. Determine the price elasticity of demand at each quantity demanded using the formula: Percentage * please press "F2" to view work Price Change in price Elasticity 100 $5.00 - - - 80 $10.00 0.20 1.00 0.2 60 $15.00 0.25 0.50 0.5 40 $20.00 0.33 0.33 1 20 $25.00 0.50 0.25 2 10 $30.00 0.50 0.20 2.5 * Based from the formaula ((Q2-Q1)/Q1) / ((P2-P1)/P1). change in quantity demanded = (Q 2 -Q 1 )/Q 1 divided by percentage change in price (P 2 -P 1 )P 1 Quantity Demand Change in Quantity demanded
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* please press "F2" to view work Price Elasticity 100 $10.00 - - - 80 $20.00 0.20 1.00 0.2 60 $30.00 0.25 0.50 0.5 40 $40.00 0.33 0.33 1 20 $50.00 0.50 0.25 2 10 $60.00 0.50 0.20 2.5 * Based from the formaula ((Q2-Q1)/Q1) / ((P2-P1)/P1). b. change in quantity demanded = (Q 2 -Q 1 )/Q 1 divided by percentage change in price (P 2 -P 1 )P 1 Quantity Demand Change in Quantity demanded Change in price
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schedule. Indicate the price elasticity value at each quantity demanded. Explain why the elasticity value gets smaller as you move down the demand curve. * please press "F2" to view work
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Module 3 Chp 20. Elasticity - a. Determine the price...

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