1. Mark's demand for chicken is given as follows: Price of Chicken Quantity demanded per week Quantity demanded per week (Income = P800) (Per kilo) P100 110 (Income = P500) 10 kilos 8 12 kilos 11 120 10 130 a. Compute for his price elasticity of demand as the price of chicken falls from P120 to P110 if his income is P500. (Use the Midpoint Method) b. Compute for his price elasticity of demand as the price changes from P120 to P130 if his income is P800. (Use the Midpoint Method) c. Compute his income elasticity of demand as his income changes from P500 to P800 is the price of chicken is P100.

Principles of Microeconomics
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Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 6PA: Suppose that your demand schedule for DVDs is as follows: Price Quantity Demanded (income = 10,000)...
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1. Mark's demand for chicken is given as follows:
Price of Chicken
Quantity demanded per
week
Quantity demanded per
week
(Income = P800)
(Per kilo)
P100
110
(Income = P500)
10 kilos
8
12 kilos
11
120
10
130
a. Compute for his price elasticity of demand as the price of chicken falls from
P120 to P110 if his income is P500. (Use the Midpoint Method)
b. Compute for his price elasticity of demand as the price changes from P120
to P130 if his income is P800. (Use the Midpoint Method)
c. Compute his income elasticity of demand as his income changes from
P500 to P800 is the price of chicken is P100.
Transcribed Image Text:1. Mark's demand for chicken is given as follows: Price of Chicken Quantity demanded per week Quantity demanded per week (Income = P800) (Per kilo) P100 110 (Income = P500) 10 kilos 8 12 kilos 11 120 10 130 a. Compute for his price elasticity of demand as the price of chicken falls from P120 to P110 if his income is P500. (Use the Midpoint Method) b. Compute for his price elasticity of demand as the price changes from P120 to P130 if his income is P800. (Use the Midpoint Method) c. Compute his income elasticity of demand as his income changes from P500 to P800 is the price of chicken is P100.
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