# Suppose that your demand schedule for compact discs is as follows

Suppose that your demand schedule for compact discs is as follows:
PRICE        QUANTITY DEMANDED(INCOME  \$10,000)   QUANTITY DEMANDED    (INCOME  \$12,000)
\$ 8                                40                                                                                              50
10                                 32                                                                                               45
12                                 24                                                                                                30
14                                 16                                                                                                 20
16                                8                                                                                                    12
a. Use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from \$8 to \$10 if

(i) your income is \$10,000, and

(ii) your income is \$12,000.
b. Calculate your income elasticity of demand as your income increases from \$10,000 to \$12,000 if

(i) the price is \$12, and

(ii) the price is \$16.

## Need Help with Homework?

0 replies

### Leave a Reply

Want to join the discussion?
Feel free to contribute!