Determine price elasticity of demand.
Graph the accompanying demand data, and then use the midpoint formula for Ed to determine price elasticity of demand elasticity of demand for each of the four possible $1 price changes. What can you conclude about the relationship between the slope of a curve and its elasticity? Elucidate in a nontechnical way why demand is elastic in the northwest segment of the demand curve and inelastic in the southeast segment.
Product Price |
Quality Demanded |
$5 |
1 |
4 |
2 |
3 |
3 |
2 |
4 |
1 |
5 |