Given the table above, draw the demand curve of rice using Excel. b. Show what will happen to your graph if this family like now less rice as they are eating more outside. c. Use the midpoint method to calculate the price elasticity of demand as the price of rice increases from SR 4 to SR 5 if (i) family’s income is SR 10,000 and (ii) family’s income is SR 15,000. d. Calculate the income elasticity of demand of this family as their income increases from SR 10,000 to SR15,000 if (i) the price is SR 3 and (ii) the price is SR 1.
Suppose that the demand schedule for rice for a Saudi family is as follows:
Price
Quantity Demanded
Of Rice Per Month
(income = SR 10,000)
Quantity Demanded
Of Rice Per Month
(income = SR 15,000)
SR 5 60 70
SR 4 80 95
SR 3 100 120
SR 2 120 145
SR 1 140 170
a. Given the table above, draw the demand curve of rice using Excel.
b. Show what will happen to your graph if this family like now less rice as they are eating
more outside.
c. Use the midpoint method to calculate the price
increases from SR 4 to SR 5 if (i) family’s income is SR 10,000 and (ii) family’s income is SR
15,000.
d. Calculate the income elasticity of demand of this family as their income increases from
SR 10,000 to SR15,000 if (i) the price is SR 3 and (ii) the price is SR 1.
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