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Suppose that your demand schedule for DVDs is as follows: Quantity Demanded Price Quantity Demanded (income-$10 000) (income $12 000) $8 40 50 $10 45 32 $12 24 30 $14 16 20 $16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of DVDS increases from $8 to $10 if () your income is $10 000, and () your income is $12 000 4 Calculate your income elasticity of demand as your income increases from $10 000 to $12 000 it the price is $12 In relation to question b, is DVDa normal good or an inferior good. Why?

Suppose that your demand schedule for DVDs is as follows: Quantity Demanded Price Quantity Demanded (income-$10 000) (income $12 000) $8 40 50 $10 45 32 $12 24 30 $14 16 20 $16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of DVDS increases from $8 to $10 if () your income is $10 000, and () your income is $12 000 4 Calculate your income elasticity of demand as your income increases from $10 000 to $12 000 it the price is $12 In relation to question b, is DVDa normal good or an inferior good. Why?

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
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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Suppose that your demand schedule for DVDs is as follows: Quantity Demanded Price Quantity Demanded (income-$10 000) (income $12 000) $8 40 50 $10 45 32 $12 24 30 $14 16 20 $16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of DVDS increases from $8 to $10 if () your income is $10 000, and () your income is $12 000 4 Calculate your income elasticity of demand as your income increases from $10 000 to $12 000 it the price is $12 In relation to question b, is DVDa normal good or an inferior good. Why?
Transcribed Image Text:Suppose that your demand schedule for DVDs is as follows: Quantity Demanded Price Quantity Demanded (income-$10 000) (income $12 000) $8 40 50 $10 45 32 $12 24 30 $14 16 20 $16 8 12 Use the midpoint method to calculate your price elasticity of demand as the price of DVDS increases from $8 to $10 if () your income is $10 000, and () your income is $12 000 4 Calculate your income elasticity of demand as your income increases from $10 000 to $12 000 it the price is $12 In relation to question b, is DVDa normal good or an inferior good. Why?
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