CS 4 Calculating Elasticy

CS 4 Calculating Elasticy - 2. Did TR increase, decrease or...

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Class Supplement # 4 CALCULATING |E D | MID-POINTS FORMULA |E D | = (Q2 - Q1) / (Q1 + Q2) / 2 (P2 - P1) / (P1 + P2) / 2 MINIVAN PROBLEM: Chrysler lowered price from $14,111 to $13,811. As a result unit sales changed from 31,000 to 32,240 1. Calculate |E D | using the midpoints formula
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Unformatted text preview: 2. Did TR increase, decrease or not change? 3. Are the values of E D , the direction of the price change and the resulting change in TR consistent with each other? D:\ECON202\CS\CS 4 Calculating Elasticy.wpd...
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