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
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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