Refer to the accompanying table.

a.Calculate the price elasticity of demand when the price rises from $450 to $550 for an individual income of $20,000.
b.Is demand elastic or inelastic? Explain your answer to the elasticity of demand you calculated in part (a)and include the mathematical equation used to find it.

Question

Refer to the accompanying table.
  
a.Calculate the price elasticity of demand when the price rises from $450 to $550 for an individual income of $20,000.
b.Is demand elastic or inelastic? Explain your answer to the elasticity of demand you calculated in part (a)and include the mathematical equation used to find it.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying table.
  
a.Calculate the price elasticity of demand when the price rises from $450 to $550 for an individual income of $20,000.
b.Is demand elastic or inelastic? Explain your answer to the elasticity of demand you calculated in part (a)and include the mathematical equation used to find it.

Refer to the Accompanying Table