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# Use the Mid-Point formula to calculate the elasticity for each of the following cases: NOTE: Write o

Use the Mid-Point formula to calculate the elasticity for each of the following cases:

NOTE: Write out the formulas before solving the problems Solution without appropriate formula will be considered wrong

CASES:

A The price of a certain cough syrup decreased from \$10 to \$5 a bottle, which caused the quantity demanded to increase from 700 bottles to 1000 bottles per day Is demand elastic, inelastic, or unitary

B The quantity of a certain shirt demanded decreased from 75,000 to 10,000 units per month as a result of an increase in price from \$18 to \$19 Is demand elastic, inelastic, or unitary?

C The price of a certain computer game increased from \$32 to \$40 which caused the quantity demanded to decrease from 5,000 to 3,000 per year Is demand elastic, inelastic, or unitary?

D You know that Krystal’s consumption of Lobster rises from 150 pounds to 200 pounds a year because her income increased from \$15,000 a year to \$24,000 a year

Calculate the elasticity and identify the type of good Lobster is to Krystal

Apr 24 2020 View more View Less Subscribe To Get Solution