Essentials of Economics 10th Edition by Bradley Schiller, Karen Gebhardt

Exercise 2

Using the demand schedule below, plot the demand curve on the graph and answer four questions about demand and elasticity:

( a ) Illustrate the demand curve on the following graph.
( b ) How much will consumers spend on shoes at the price of (i) $120 (ii) $100 (iii) $80 (iv) $60 (v) $40?
( c ) As the price drops from $120 to $100 a pair, is demand elastic, unitary elastic, or inelastic?
( d ) As the price drops from $80 to $60 a pair, is demand elastic, unitary elastic, or inelastic?
( e ) As the price drops from $60 to $40 a pair, is demand elastic, unitary elastic, or inelastic?