Question

Check Figures:

The Coefficient of Elasticity between the prices of $25 and $20 should be about 3.0

The Coefficient of Elasticity between the prices of $10 and $5 should be about .3.

Calculating the Coefficient of Elasticity (ED) Name Consider the following demand schedule. Price Quantity Demanded $25 100 Calculate the coefficient of elasticity (Ed) between: a. P = $25 and P = $20 b. P = $20 and P = $15 C. P = $15 and P = $10 d. P = $10 and P = $5 SHOW ALL OF YOUR WORK

Answer 1

a) we will find the price elasticity of demand Using midpoint method. When price r from $25 to $20, Quantity demanded 7 from 20 to 40. PED = Q2 -Q, P2-P, Q₂ +Q, P₂ + Pi) 2 2 Q2 = new quantity demanded = 40 6 = initial quantity demanded = 20 P2 = new posice = $20 Pi= initial price = $25 PED = (ed) 40-20 1 20-25 (40+20)/(20+25) 1 . The coefficient of elasticity between the prices of $25 and $20 is real = 3. by Pi = $20; P2 = $15; G = 40 ; Q2 = 60 PED = 20 60 - 40 / 15-20 Go +40° 7 15+20 2 +(38)/60) - 13-14 The coefficient of elasticity between $20 and $15 - is 1.4.

+ C) P, = $15 ; P2 = $10; Qi = 60; 92 = 80 PED = 80 - 60 80 +60 10-15 (lot 15 (2016) (106) 25 -0.41 70 - 10 the prices The coefficient of elasticity between of $15 and $10 is 0.71. dy Pi= $10; P = $5 ; Q = 80; Q2 = 100 PED = 100 - 80 100+80 5 - 10 (5 +10 2 the prices . of The coefficient of elasticity between $10 and $5 is about 0.3